The U.S. Federal Trade Commission (FTC) has launched a wide-ranging antitrust investigation into Microsoft, focusing on its software licensing and cloud computing businesses, according to sources. The inquiry, approved by FTC Chair Lina Khan ahead of her anticipated departure in January, comes as Donald Trump’s election raises questions about the future of antitrust enforcement.
The FTC is investigating whether Microsoft is using punitive licensing terms to lock customers into its Azure cloud service, restricting data migration to competing platforms. It is also scrutinizing Microsoft’s practices related to cybersecurity and artificial intelligence products, including its integration of AI tools into Office and Outlook.
Competitors have long criticized Microsoft’s tactics. Google recently accused Microsoft of charging a 400% markup for running Windows Server on rival cloud platforms and delaying critical security updates. NetChoice, a lobbying group representing firms like Amazon and Google, argued that Microsoft’s dominance in productivity software and operating systems amplifies the impact of its licensing policies.
The investigation also ties into broader concerns about competition in artificial intelligence, with the FTC examining Microsoft’s $650 million investment in Inflection AI. Previously, the FTC reviewed Microsoft and OpenAI for potential anticompetitive behavior.
Microsoft, often spared in Big Tech crackdowns, now faces intensified scrutiny. Other tech giants, including Google, Meta, Apple, and Amazon, are already embroiled in antitrust battles. Microsoft’s prior relationship with Trump-era policies, such as winning a controversial $10 billion Pentagon contract, adds complexity to its regulatory challenges.
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