Washington, D.C., November 28, 2024 - The Federal Trade Commission (FTC) has initiated a comprehensive investigation into Microsoft, focusing on the tech giant's business practices.
In a letter to Microsoft, the FTC requested information to assist in its inquiry, according to sources familiar with the matter. Both the FTC and Microsoft have declined to comment on the investigation, which was first reported by Bloomberg.
Microsoft has emerged as a leader in artificial intelligence (AI), bolstered by investments in OpenAI and its own AI system, Copilot, which integrates with its cloud computing, business software, gaming, and devices.
The company has faced antitrust challenges previously, with European officials considering a formal investigation into Microsoft's partnership with OpenAI earlier this year, although this did not materialize.
Additionally, Microsoft has been contending with FTC opposition regarding its $69 billion acquisition of video game publisher Activision Blizzard, which was completed in October 2023. The agency argued that the merger would grant Microsoft a monopoly in the video game publishing market, a claim the company has denied.
The investigation arrives just months before the inauguration of President Donald Trump, who has not yet announced his choice to lead the FTC but is expected to replace current chair Lina Khan. The new administration may also choose to dismiss ongoing FTC investigations.
Trump's return has raised questions about how his administration will handle existing antitrust cases against tech giants, including Apple and Amazon. Google is also awaiting a decision on whether a federal judge will accept the U.S. government's recommendation to force it to divest Chrome after determining its search business is monopolistic.