The US Federal Trade Commission (FTC) is accelerating its investigation into Microsoft. The regulator wants to know whether the company is illegally monopolizing large parts of the enterprise computing market with cloud software and AI services, including Copilot. Competitors have recently received information requests with questions about Microsoft’s licensing and business practices.
In recent weeks, the FTC has sent requests to companies that compete with Microsoft in business software and cloud computing. The requests contain a series of questions about Microsoft’s licensing and other business practices. At least half a dozen companies received the requests, sources told Bloomberg.
In its requests, the FTC seeks evidence that Microsoft makes it more difficult for customers to use Windows, Office, and other products with competing cloud services. The regulator is also seeking information on how Microsoft bundles artificial intelligence, security, and identity software in Windows and Office.
Previous changes following European complaints
Microsoft has already made some changes in response to complaints from customers and competitors about its licensing practices. The company relaxed its policy somewhat, mainly to make it easier for smaller European cloud providers to host Microsoft products. Last year, Microsoft also signed an agreement with the Cloud Infrastructure Services Providers in Europe (CISPE).
Microsoft argues that some products are not fully interoperable with rival clouds because the underlying technology for certain functions differs. In addition, a series of malicious hacks has put increasing pressure on Microsoft to offer more robust security features in core products.
According to earlier reports, the FTC launched its investigation into Microsoft in November 2024. Among other things, the regulator wants to know whether Microsoft’s dominance in cloud services exceeds the limits of fair competition.
No final decisions have been made yet. FTC investigations do not always lead to enforcement actions. Microsoft and the FTC have not commented.