In a nutshell: Everyone seems to be complaining about how Microsoft does enterprise within the cloud, and the Federal Commerce Fee has lastly determined to step in. Whereas the Fee has not formally opened an investigation, hopes are that the change of energy between the outgoing and incoming presidential administrations will not hinder efforts.
The FTC is contemplating opening a brand new investigation into Microsoft, an organization accused time and time once more of using anticompetitive practices to hinder rivals within the profitable cloud enterprise. Unnamed sources spilled the beans to the Monetary Instances, stating that the federal company requested trade gamers for related suggestions earlier than deciding to begin a proper probe.
Redmond rivals informed the FTC that Microsoft is forcing clients to make use of its Azure platform by utilizing illegal practices to dam third-party cloud companies. Microsoft is allegedly making Workplace 365 merchandise incompatible with different cloud platforms and requiring pricey exit charges for purchasers contemplating leaving Azure.
The FTC investigation would additionally look into alleged minimal spending contracts that Microsoft presents to firms at vital reductions if they comply with a sure spending degree. The US company listened to suggestions from public cloud suppliers, and rivals highlighted that some software program licensing practices have been forcing clients to remain on Azure in perpetuity.
This investigation would be the final main initiative by FTC Chair Lina Khan, who has served because the youngest chair (35) since President Joe Biden appointed her in 2021. Khan was notably energetic towards Massive Tech’s anticompetitive conduct, stating that her company was going after the “mob bosses” within the expertise enterprise moderately than the “henchman” on the backside.
When President-elect Donald Trump takes workplace on January 20, 2025, Khan’s tenure on the FTC will doubtless finish. Fortuitously, the struggle towards expertise giants is among the few political points that pulls bipartisan assist in Washington. So, a brand new FTC boss might proceed Khan’s investigation towards Microsoft and different expertise monopolists sooner or later.
Redmond is among the “Massive Three” ventures within the cloud enterprise, preventing for market share with Amazon and Google. In 2023, Google alleged that Microsoft abused its dominant place to achieve an anti-competitive benefit within the European cloud sector. Microsoft reacted by accusing Google of funding “shadow campaigns” by hostile lobbying organizations to undermine its place with EU regulatory authorities.