Microsoft dealing with one other main antitrust investigation, US FTC goes after numerous main points – Firstpost

Microsoft is as soon as once more within the highlight of a serious antitrust investigation, with the US Federal Commerce Fee (FTC) launching an expansive probe into its enterprise practices.  

The inquiry spans Microsoft’s cloud computing, software program licensing, cybersecurity merchandise, and synthetic intelligence (AI) choices. This marks a return to intense regulatory scrutiny for the tech big, harking back to the federal government’s failed try to interrupt it up over 20 years in the past.

A deep dive into Microsoft’s energy

The FTC’s investigation has gained traction after over a yr of casual interviews with opponents and companions. Now formalised, the company has despatched Microsoft an in depth request for info, mentioned to be a whole bunch of pages lengthy, following approval from FTC Chair Lina Khan. As a part of its efforts, FTC attorneys will meet with Microsoft’s opponents subsequent week to collect extra insights into the corporate’s practices.

On the centre of the investigation is Microsoft’s bundling technique, notably the mixing of productiveness instruments like Phrase, Excel, and Groups with its cloud and cybersecurity choices. Rivals, together with Salesforce’s Slack and Zoom, have lengthy criticised this apply, arguing it undercuts their skill to compete pretty. Safety software program like Microsoft Entra ID (previously Azure Energetic Listing), which is bundled with its cloud companies, can be beneath scrutiny, with rivals claiming these phrases stifle competitors within the cybersecurity area.

Considerations over cybersecurity and cloud computing

Microsoft’s cybersecurity report, particularly as a serious authorities contractor, has raised alarms. A sequence of high-profile cybersecurity incidents linked to Microsoft merchandise has drawn consideration to the dangers of concentrated market energy. As an illustration, the CrowdStrike crash earlier this yr, which impacted hundreds of thousands of units utilizing Microsoft Home windows programs, highlighted the ripple results of disruptions in such a dominant ecosystem.

The FTC has voiced issues that the cloud computing market’s focus might pose vital dangers to the economic system. A November 2023 report famous that outages or degraded companies from main suppliers like Microsoft might have a cascading impact throughout sectors, exacerbating fears of overreliance on just a few dominant gamers.

Regulatory shifts and Microsoft’s future

This investigation marks one of many remaining strikes by Lina Khan, who has led an aggressive marketing campaign towards company consolidation throughout her tenure as FTC Chair. With a brand new administration beneath President-elect Donald Trump, it stays unclear how regulatory priorities will shift. Enterprise leaders anticipate a lighter regulatory contact, however the resolution to advance the case will fall to Trump’s yet-to-be-named FTC Chair.

The renewed deal with Microsoft’s enterprise practices underscores the enduring issues over its affect in tech markets. Because the probe unfolds, its end result might have far-reaching implications for competitors in cloud computing, software program licensing, and cybersecurity, doubtlessly reshaping the panorama of the tech business.