FTC to probe whether Microsoft's cloud clout crosses the line
Competitors asked to detail licensing terms, training costs, and business practices in widening antitrust inquiry
The US Federal Trade Commission has sent out a raft of civil investigative demands to Microsoft's competitors as it warms up a probe into whether the cloud and software giant has an illegal monopoly across chunks of the enterprise tech market.
Bloomberg reported over the weekend that the FTC had contacted at least half a dozen companies as part of the probe, presenting them with detailed questions on Redmond's licensing and business practices.
Whether Microsoft makes it difficult (or more costly) for customers to run its software on third-party cloud platforms appears to be a key question, though AI, security, and ID software are also on the agenda.
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The FTC demanded stacks of info on Microsoft's AI operations in 2024, according to the report. This included model training costs, datacenter operations, and licensing practices.
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The UK Competition and Markets Authority's investigation into the cloud services market concluded last summer.
It recommended the CMA flexes "its digital markets powers to prioritize commencing strategic market status (SMS) investigations, to consider designating the two largest providers – Microsoft and Amazon Web Services (AWS) – with SMS in relation to their respective digital activities in cloud services."
It also said it would "keep under review possible options for further designation investigations, and anticipates that the CMA Board will consider options in early 2026."
The EU is also examining if Microsoft is abusing its dominant market position in traditional on-premises software as more enterprise customers consider shifting workloads to the cloud. Google made a complaint to the European Commission's antitrust authorities in September 2024.
The situation is reminiscent of the long-running battle with the US Department of Justice over whether Microsoft used its hefty desktop operating system market share to quash browser rivals back in the 1990s. That led to a consent decree where Microsoft agreed to a number of conditions to forestall a breakup of the organization.
Microsoft is not the only tech giant drawing attention from the FTC right now. Last week, FTC chairman Andrew Ferguson sent a letter to Apple CEO Tim Cook, "reminding him of Apple's obligations to its customers."
The letter came on the back of "reports that Apple News systematically boosts left-wing sources and suppresses right-wing sources," the FTC said.
"Big Tech companies that suppress or promote news articles in their news aggregators or feeds based on the perceived ideological or political viewpoint of the article or publication may violate the FTC Act," Ferguson warned Cook. ®