The Federal Trade Commission (FTC) has initiated an extensive investigation to determine whether Microsoft has breached antitrust laws in various areas of its business. The inquiry focuses on several key sectors, including cloud computing, artificial intelligence (AI), and cybersecurity, the sources familiar with the matter said.
As part of the investigation, the FTC recently sent a detailed request for information to Microsoft. The regulator is particularly interested in how the company integrates its cloud computing services with other products like Office and security tools. Additionally, the FTC is examining Microsoft's growing influence in the AI industry, the sources said.
This investigation is seen as an assertive step by the FTC, led by Chair Lina Khan, who has emphasized the importance of monitoring powerful companies and addressing rapid shifts in the technology sector. Khan, 35, is expected to leave her role as the Biden administration transitions to the leadership of President-elect Donald J. Trump. Her departure may signal a potential shift in the federal approach to tech regulation.
The Biden administration has been actively scrutinizing major tech companies, focusing on how they influence consumer behavior and market competition. In recent months, the FTC has filed lawsuits against Amazon and Meta, accusing them of engaging in practices that suppress competition. Similarly, the Justice Department has targeted Google for its dominance in digital advertising and Apple for restrictive practices within its ecosystem of devices and software.
Microsoft, despite being a tech giant with a vast portfolio that includes Windows, LinkedIn, and Xbox, had largely avoided significant antitrust scrutiny in recent years. However, this wasn't always the case. In the late 1990s, the U.S. government sought to break up Microsoft over its monopolistic practices related to its Windows operating system and its tactics to edge out competitors in the browser market. Although a judge initially ruled in favor of splitting the company, the decision was later overturned on appeal.
This new FTC inquiry could mark a turning point, bringing Microsoft's business practices back into the spotlight.
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