As the Biden administration enters its final weeks, the Federal Trade Commission (FTC) has initiated a broad antitrust investigation into Microsoft, scrutinizing the tech giant’s cloud services, artificial intelligence (AI) tools, and cybersecurity software.
The FTC’s request for information, sent to Microsoft on Wednesday, signals an effort to address potential anti-competitive practices before the administration transitions to President-elect Donald Trump’s leadership.
This investigation marks the latest move in the Biden administration’s push to regulate Big Tech, particularly under FTC Chair Lina Khan, who has led aggressive actions against major tech companies. The agency’s focus on Microsoft is the result of months of preparation, and it comes amid ongoing scrutiny of the company’s expansive reach in the tech industry, including its dominance in cloud computing, AI, and cybersecurity.
Microsoft’s cloud business is second only to Amazon, and its software products, including Windows and Office, are integral to billions of users worldwide. The company’s multibillion-dollar partnership with OpenAI places it at the forefront of the AI sector, raising concerns about potential market control. The FTC’s probe could examine whether Microsoft’s practices in these areas stifle competition or violate antitrust laws.
The investigation also follows similar actions by the Department of Justice, which has brought lawsuits against other tech giants, including Google. However, as the Biden administration nears its end, there is uncertainty about whether the incoming Trump administration will continue these investigations. Trump has signaled a different approach to regulating Big Tech, with expectations that he may ease some of the scrutiny currently faced by companies like Microsoft.
This antitrust probe comes nearly 25 years after the landmark US vs Microsoft case in the late 1990s, which accused the company of monopolizing the PC operating system market. While that case did not lead to a breakup of the company, it led to significant changes in Microsoft’s business practices, helping to pave the way for other tech companies like Google to rise.
The Washington Post and the Register contributed to this report.
