Who here is old enough to remember back in the late 1990s when Microsoft got in trouble with regulators when it bundled its Internet Explorer browser with Windows? Since then, Microsoft has largely managed to stay out of trouble, especially in the recent years when regulators have been pushing for the breakup of large tech companies like Google. But now, it looks like Microsoft’s streak could be coming to an end, with a report suggesting that the FTC could be looking to launch an antitrust investigation into Microsoft.
FTC could launch antitrust investigation into Microsoft
The Microsoft FTC antitrust probe isn’t brand new. The FTC first opened this investigation in the final days of the Biden administration. Then-chair Lina Khan signed off before she left office. What’s notable is that it didn’t die when the White House changed hands. FTC Chair Andrew Ferguson, a Trump appointee, has kept it alive.
The investigation has been escalating. In February, Bloomberg reported that the FTC issued civil investigative demands to at least six companies competing with Microsoft in cloud and business software. These are similar to civil subpoenas. It also means that the FTC’s interest has moved beyond just mere curiosity.
So now the probe is looking into whether Microsoft abuses its dominance in productivity software to lock customers into Azure. Regulators want to know if Microsoft makes it harder to run its products on rival cloud platforms like AWS or Google Cloud. In fact, there have been several anonymous complaints from customers, who found that it costs significantly more to run Windows software outside of Azure.
Microsoft isn’t the only target
But like we said, Microsoft isn’t alone in facing investigations by regulators. The FTC went after Meta, alleging that buying Instagram and WhatsApp was an attempt to buy out potential rivals. The agency lost that case. It’s still pressing ahead with a similar probe into Amazon.
Google has faced the most aggressive scrutiny. The DOJ found it had illegally monopolized search through exclusive deals that made Google the default on browsers and phones. A separate case targeted its advertising technology business and reached the same conclusion. Google avoided a forced breakup in both cases but faces strict behavioral limits going forward.
Apple has drawn scrutiny in the US and Europe too, with regulators focused on App Store policies and developer fees. All this is to say that it isn’t surprising that the FTC has found a new target in Microsoft.
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