The Federal Trade Commission (FTC) has initiated an investigation into Microsoft for alleged anti-competitive practices concerning its cloud computing division, Azure. This inquiry is focused on potential abuse of market dominance.
According to a source familiar with the matter, Microsoft is accused of imposing punitive licensing terms on clients, which may hinder their ability to transfer data from Azure to competing platforms. FTC investigators are scheduled to meet with competitors next week to gather further information.
In a related development, Google filed a complaint against Microsoft in the European Commission at the end of September, asserting that Microsoft's licensing conditions obstruct European organizations from migrating workloads from Azure to other cloud services. Google claims that companies using Windows Server face exorbitant costs—up to 400% higher—when attempting to operate their software on non-Microsoft platforms.
This investigation reflects a shift in the approach of U.S. regulatory authorities towards major technology firms, which had previously been largely unchallenged for over a decade. The FTC and the Department of Justice are now actively addressing concerns related to anti-competitive practices that may stifle competition and harm consumers.
While U.S. lawmakers have yet to reach a consensus on reforming antitrust laws in the digital age, the FTC's actions have received support from some politicians. However, many legal experts argue that these efforts may be driven more by political motives than genuine concern for fair competition.
In contrast, the European Union has enacted new legislation aimed at curbing the dominance of major tech companies, leading to multiple antitrust actions against firms like Google and Meta.