FTC Launches Major Antitrust Investigation Against Microsoft

The U.S. Federal Trade Commission has initiated a comprehensive antitrust investigation into Microsoft, scrutinizing its software licensing and cloud computing operations. The investigation was sanctioned by FTC Chair Lina Khan amid concerns over Microsoft's alleged market power abuse in productivity software and cybersecurity practices related to AI tools.

The U.S. Federal Trade Commission has embarked on a significant antitrust inquiry targeting Microsoft, particularly focusing on its software licensing and cloud computing sectors, as confirmed by sources on Wednesday.

The probe received approval from FTC Chair Lina Khan, anticipating her departure in January. With Donald Trump's election indicating a potential shift in FTC leadership, the investigation's future outcome remains uncertain. Central to the inquiry are allegations of Microsoft leveraging its dominance in productivity software to impose restricting licensing terms, preventing data migration from its Azure cloud service.

Further, the FTC is delving into Microsoft's cybersecurity and artificial intelligence product strategies. Microsoft chose not to comment, as criticisms of its policies surfaced from several quarters, including NetChoice, representing major competitors like Amazon and Google.

(With inputs from agencies.)