FTC Launches Antitrust Probe Into Microsoft Amid Cloud and AI Concerns

November 27, 2024
FTC Launches Antitrust Probe Into Microsoft Amid Cloud and AI Concerns
  • This probe comes shortly after Google filed a complaint against Microsoft in September 2024, alleging anti-competitive behavior in Europe.

  • The U.S. Federal Trade Commission (FTC) has initiated an antitrust investigation into Microsoft, examining its practices in cloud computing, software licensing, cybersecurity products, and artificial intelligence.

  • Bloomberg first reported on the investigation, which was later confirmed by The Washington Post and CNN, highlighting the scrutiny Microsoft is under.

  • This investigation, which follows informal discussions with Microsoft's competitors, has led to a request for extensive documentation from the company, reportedly hundreds of pages long.

  • The lengthy U.S. legal process suggests that resolutions to these investigations could take years, contrasting with the immediate consequences faced by companies under European regulations.

  • The FTC's information request is signed by Chair Lina Khan, whose future in the role may be uncertain with the upcoming administration change.

  • As the investigation unfolds, Microsoft maintains a strong consensus rating of 'Strong Buy' from analysts, indicating investor confidence despite the scrutiny.

  • In a broader context, while U.S. lawmakers struggle to reform antitrust laws for the digital age, the FTC's actions have been viewed by some as necessary to counter the influence of tech giants.

  • Notably, Microsoft has denied allegations of misusing customer data from its 365 applications for AI training, amidst ongoing partnerships in the tech space.

  • The investigation's timing is significant, occurring just weeks before President Joe Biden is set to transfer power to Donald Trump in January 2025.

  • Overall, the scrutiny on Microsoft reflects a growing concern over the power of major technology firms and their market practices.

Summary based on 20 sources


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