The Federal Trade Commission (FTC) is moving forward with an antitrust investigation into Microsoft (NASDAQ:MSFT), a probe initially launched during the Biden administration. This investigation focuses on Microsoft’s artificial intelligence (AI) operations, cloud computing strategies, and software licensing practices. The inquiry persists under the Trump administration, with FTC officials continuing to collect information from relevant parties. The investigation aims to assess whether Microsoft’s market influence grants it an unfair advantage over competitors in AI and cloud services.
Earlier reports on Microsoft’s regulatory challenges have highlighted concerns surrounding its cloud business. Investigations have previously scrutinized whether the company’s integration of Office 365 with its Azure cloud service gives it a competitive edge in a way that limits market competition. Additional concerns have been raised regarding Microsoft’s partnerships, particularly its collaboration with OpenAI, and whether such deals affect competition within the AI sector.
What Aspects of Microsoft’s Business Are Under Scrutiny?
The FTC’s investigation includes an examination of Microsoft’s AI investments and how they impact competition. The regulator has sought information on why Microsoft reduced funding for its own AI projects following its partnership with OpenAI. Authorities are assessing whether the company’s reliance on OpenAI’s software has influenced competition in the AI sector. Furthermore, Microsoft’s software licensing agreements are being reviewed to determine whether its bundling of productivity and cloud services creates barriers for rivals.
How Is Microsoft Responding to the Investigation?
Microsoft has acknowledged the investigation and stated its willingness to cooperate.
“We are working cooperatively with the agency,”
Microsoft spokesperson Alex Haurek said. The company has also requested an internal review within the FTC regarding alleged leaks related to the antitrust probe. Microsoft has expressed concerns that details of the investigation were disclosed without authorization, prompting it to call for further scrutiny of the regulator’s handling of sensitive information.
The FTC has also reached out to third parties to gather additional data on Microsoft’s market position. Some companies have reported that regulators are investigating whether Microsoft’s financial strength in other sectors allows it to maintain an advantage in AI development. Reports indicate that the FTC is particularly interested in whether Microsoft’s software licensing practices negatively impact competition by limiting access for other businesses.
Regulatory examinations into Microsoft’s business practices have been ongoing for years. The company has previously faced scrutiny for how it integrates its software and cloud services. Such investigations have often centered on whether Microsoft’s approach to bundling its products discourages fair competition. The current probe extends these concerns to AI, an area where Microsoft has made significant investments, particularly through its collaboration with OpenAI.
Regulatory scrutiny of major tech companies has intensified as authorities examine competitive practices in AI and cloud computing. Microsoft’s involvement in AI development through OpenAI has raised concerns over market influence and fair competition. The FTC’s probe could lead to regulatory action, but investigations of this scale often take years to conclude. Regardless of the outcome, the inquiry highlights the increasing regulatory focus on how dominant technology firms structure their businesses and partnerships.
