Microsoft is the latest tech giant that is under an antitrust radar. The Federal Trade Commission (FTC) has launched an investigation into the company’s trade practices. This time, Microsoft’s cloud services, software licensing, cybersecurity offerings, and AI products, are all under review.
The agency’s main concern is over Microsoft’s bundling of productivity tools and security software with its Azure cloud services. In recent times there have been security breaches that involved Microsoft products. Since these products are also used by the US government, it becomes more critical. As per media reports, the FTC has Microsoft to provide extensive documentation in the same regard. This comes after more than a year of informal talks with industry partners and competitors.
The Cyber Safety Review Board under the US government had previously criticised Microsoft’s “inadequate” security culture. CEO Satya Nadella responded to these concerns over an internal memo and asked his teammates to prioritise security.
Back in 1990, the Department of Justice sued the tech giant for monopolistic practices related to its Windows operating system. If the authorities decide to levy formal charges against Microsoft, we might see the return of antitrust battles. Companies like Amazon, Apple, Meta, and Google are already under the radar.
But since the US elections just wrapped up, and President Trump is now in power. He can appoint a new leader for the FTC. This can significantly impact how the investigation moves forward. Nevertheless, past Republican-led efforts targeting Google and Meta suggest that scrutiny of Big Tech, including Microsoft, may continue even under the new leadership.
As I mentioned earlier, this is not the first antitrust case against a major tech giant. The US government has big concerns over Big Tech’s dominance and potential anti-competitive practices. Let’s see how Microsoft battles through this.