On Wednesday Eastern Time, informed sources revealed that the Federal Trade Commission (FTC) has launched a wide-ranging antitrust investigation into Microsoft, including its software licensing and cloud computing businesses.
The investigation has been approved by Lina Khan, the head of the Federal Trade Commission and a pioneer in antitrust in the United States. As a well-known anti-monopoly figure in the United States, Lena Khan was known for her tough approach during her tenure and has been committed to curbing the monopoly momentum of large tech companies such as Meta and Amazon.
However, it is worth noting that Lena Khan is likely to resign in January next year. After US President elect Trump officially takes office next year, it is widely predicted that he will appoint a Republican with a more moderate attitude towards the business environment as the chairman of the FTC. This personnel change may leave the investigation into Microsoft unresolved.
Microsoft under antitrust investigation
Earlier this month, sources confirmed that the FTC is investigating allegations that Microsoft may have abused its market power in the field of productivity software. It is alleged that the company prevented customers from transferring their data from its Azure cloud service to other competing platforms through punitive licensing terms.
In addition, the FTC is also investigating Microsoft's provisions related to cybersecurity and artificial intelligence products.
Previously, several competitors, including Google and Amazon, have explicitly complained about Microsoft's practices, claiming that it has locked customers onto its cloud service Azure. Amazon and Google are Microsoft's main competitors in the field of cloud computing.
NetChoice, a lobbying group representing online companies such as Amazon and Google, criticized Microsoft's licensing policies and the integration of artificial intelligence tools into Office and Outlook. The organization stated that:
Given that Microsoft is the world's largest software company and dominates the fields of productivity software and operating systems, the scale and consequences of its licensing decisions are extraordinary
In September of this year, Google complained to the European Commission about Microsoft's practices, stating that it required customers to pay a 400% premium in order to continue running Windows on its competitors' cloud computing servers and provide them with limited and delayed security updates.
The direction of the investigation is still unknown
The FTC has requested Microsoft to provide extensive and detailed information. The FTC claims that they have jurisdiction over the investigation into the competition between Microsoft and OpenAI in the field of artificial intelligence, and has begun investigating Microsoft's $650 million deal with the AI startup Reflection AI.
However, considering that Trump is about to take office next year, the final direction of this investigation may still be uncertain. It is currently unclear whether Trump will relax regulation of large tech companies.
Despite Trump's emphasis on relaxing regulations, he also initiated several investigations into large tech companies during his last term. The incoming Vice President JD Vance also expressed concerns about the influence of these companies on public opinion.