Market power "problematic": FTC launches investigation against Microsoft
The move was prepared for a long time in discussions with the competition: Now the US trade regulator has reportedly launched an investigation into Microsoft.
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The US Federal Trade Commission (FTC) has launched an investigation into Microsoft, focusing on its cloud computing, software licensing, cybersecurity tools and AI products businesses. This has been reported by several US media outlets, but the Federal Trade Commission itself has not yet commented. The move had been announced. The initiation of the investigation was preceded by informal talks with Microsoft's competitors. The US company has now been asked to hand over information. The document handed over to Microsoft is hundreds of pages long, writes the financial news agency Bloomberg. The move was personally approved by FTC boss Lina Khan.
Microsoft products too widespread
As Bloomberg explains, citing anonymous sources, the FTC is focusing its investigation on offers in which Microsoft bundles its popular Office services with security software and cloud products. In light of several cybersecurity incidents involving Microsoft products and the fact that many of them are also used extensively by US authorities, the FTC has come to the conclusion that the company's market power is problematic. Outages that affect the usability of services could have far-reaching consequences for the economy or industries, Bloomberg quotes from an FTC report. As an example, reference is made to the failure of many Windows systems due to an error at CrowdStrike in the summer.
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According to the report, the FTC is also focusing on the role of Microsoft Entra ID. This would hinder competitors. They can now explain their point of view in further talks, Bloomberg explains. Neither Microsoft nor the FTC have commented on the report. In view of the imminent change at the top of the US government, however, it is unclear how the investigation will continue. Khan will be leaving her post and Donald Trump has not yet announced who will succeed her. Only under new FTC leadership will it be decided whether the investigation will continue and, if necessary, whether proceedings will be initiated.
(mho)
