Japan Opens Antitrust Investigation into Microsoft’s Cloud Licensing Practices

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Photo by Abid Shah on Unsplash

The Japan Fair Trade Commission announced on March 4, 2026 that it has opened an investigation into suspected violations of the Antimonopoly Act by Microsoft Corporation, Microsoft Japan Co., Ltd. and Microsoft Ireland Operations Limited. The companies are being examined collectively in relation to their cloud computing business practices.

According to the authority, the investigation concerns the provision of the cloud service known as Microsoft Azure and its interaction with other Microsoft software and services, including Windows Server, Windows Client, Microsoft SQL Server, Microsoft 365 and Visual Studio. The JFTC suspects that certain contractual or technical conditions attached to these products may restrict competition in the cloud services market.

Specifically, the authority is examining whether Microsoft has prevented enterprises that provide cloud services competing with Azure from securing or maintaining transactions by limiting the ability of customers to use Microsoft software in combination with competing cloud platforms. The investigation also covers whether Microsoft has altered or structured trade terms in a manner that increases costs for customers when Microsoft software is deployed on rival cloud services, compared with its use on Azure.

As part of the initial phase of the investigation, the JFTC has decided to seek information and comments from third parties. This step follows the policy direction set out in its June 2022 statement on strengthening competition policy enforcement in response to digitalization and broader socioeconomic changes. The authority points out that it is gathering input at an early stage to better assess the competitive impact of the suspected conduct.

The JFTC has not reached any conclusion as to whether the Antimonopoly Act has been violated. The request for information and comments is limited to the conduct described and submissions must be made in Japanese.