The US Federal Trade Commission has launched a broad antitrust investigation into Microsoft, including its cloud computing, software licensing, cybersecurity offerings and AI products, a source related to the matter said.
The FTC aims to investigate claims that the software giant is using its dominance in abusing the market power by imposing licensing terms to not allow customers to move their data from its cloud service, Azure, to other competitive platforms. The agency is also looking at practices related to cybersecurity and AI products.
Rival cybersecurity and authentication firms claimed that Microsoft's license terms and software bundles with cloud services make it more difficult for them to compete.
FTC antitrust lawyers are set to meet with Microsoft competitors to gather more information on the tech giant's business practices.
The probe was approved by FTC Chair Lina Khan ahead of her possible departure in January. However, the final outcome of the probe remains uncertain as Donald Trump's election will lead to the appointment of fellow Republicans with a softer approach towards business. The new administration can also replace any current FTC investigators.
Competitors have sharply criticised the giant's practices to keep customers locked into Azure. Google in September this year complained to the European Union (EU) alleging that Microsoft made customers pay a markup of 400 per cent to keep running windows servers on computing operators, Reuters reported. The company also gave them limited security updates.
The FTC has demanded a wide range of concerned detailed information from Microsoft, Bloomberg reported.
Microsoft has been an exception to the recent US antitrust regulators' scrutiny against big tech companies under Biden's administration, in which Meta, Apple and Amazon have been accused of unlawfully maintaining monopolies and anticompetitive behaviour.