The U.S. Federal Trade Commission (FTC) is progressing with an extensive antitrust investigation into Microsoft Corporation (NASDAQ: MSFT), originally initiated during the final months of the Biden administration. According to sources cited by Bloomberg News, FTC staff have been meeting with various companies and stakeholders in recent weeks to gather further information.
The investigation, which began last year under former FTC Chair Lina Khan, focuses on allegations that Microsoft may be leveraging its market power in ways that harm competition. Key areas of concern include the company’s software licensing policies, cloud computing business, and artificial intelligence (AI) operations. The probe has continued under the leadership of new FTC Chair Andrew Ferguson, who assumed the position after President Donald Trump took office in January 2025.
Key Areas of Investigation
- Cloud Computing and Software Licensing
- The FTC is scrutinizing Microsoft’s alleged restrictive licensing terms, which may discourage customers from transitioning from its Azure cloud platform to competing services.
- The agency has requested details regarding Microsoft’s data centers and its capacity challenges in meeting customer demand.
- Artificial Intelligence Strategy
- The investigation is examining Microsoft’s decision to scale back internal AI investments following its high-profile partnership with OpenAI.
- Regulators are assessing whether Microsoft’s AI-related business practices could be limiting competition or innovation in the sector.
- Cybersecurity and Market Competition
- The FTC is also looking into Microsoft’s cybersecurity practices, particularly in relation to its cloud infrastructure and enterprise software offerings.
Neither Microsoft nor the FTC has publicly commented on the ongoing investigation. The outcome of this probe could have significant implications for Microsoft’s business strategy and the broader cloud computing and AI industries.
