Antitrust regulations aggressively approach companies that are in violation of the laws and scrutinize such business practices by ordering policy changes or even levying heavy fines. After pursuing other big names such as Google and Apple, it looks like the authorities are now investigating Microsoft over potential engagement in anti-competitive practices and any dominance that limits consumer choice, specifically for its cloud computing and software businesses.
FTC has initiated an antitrust investigation into Microsoft for any potential anti-competitive practices
Antitrust regulations pursuing Google have been all over the news lately, and it is not the only company facing increasing pressure from authorities. According to a Bloomberg report, the U.S. Federal Trade Commission (FTC) has now pursued a detailed antitrust investigation into Microsoft. It is said to look into its varied business operations, including cloud computing, licensing, cybersecurity, and artificial intelligence products and services.
This initiation marks the ongoing aggressive approach of regulators to combat anti-competitive practices as this is the fifth big tech company to have come under the radar for its dominance and attempts to stifle competition. FTC has been demanding extensive information on various business practices and has been informally in discussions with company partners and competitors for over a year.
One of the focal points of the investigation remains software bundles with Azure cloud services such as Microsoft 365. These bundles have raised concerns that they could be anti-competitive and leave other cloud providers feeling disadvantaged. Since Microsoft is a primary software supplier for the U.S. government, it has garnered a lot of attention and scrutiny, with significant concerns regarding its cybersecurity offerings.
The government Cyber Safety Review Board concluded earlier in the year that Microsoft's security approach needs work and is not sufficient, given its vital role in the tech industry. After this review, CEO Satya Nadella addressed its employees through a memo emphasizing the importance of prioritizing security at all times. Microsoft has been able to dodge antitrust regulators for quite some time, and it was only back in the 1990s that it faced a lawsuit filed by the DOJ.
However, investigators' approach might take a different route with the incoming Trump administration. It could also be the case that investigations might not be impacted by the political situation at all and might continue actively. Microsoft, along with other big giants, is facing increasing pressure to balance innovation while maintaining competitive practices according to the law.
