① The Federal Trade Commission (FTC) of the usa has launched a wide-ranging antitrust investigation into microsoft, including its software licensing and cloud computing business. ② The allegations against microsoft in the investigation include abuse of market power, using punitive licensing terms to prevent customers from transferring data, and terms related to cybersecurity and ai products. ③ However, considering the upcoming changes in the usa government, the final outcome of this investigation remains uncertain.
According to news from the Financial Association on November 28 (Editor: Liu Rui), informed sources revealed that the Federal Trade Commission (FTC) of the usa has launched a wide-ranging antitrust investigation into microsoft, including its software licensing and cloud computing business.
The usa "antitrust pioneer," FTC Chair Lina Khan approved this investigation. As a well-known antitrust figure in the usa, Lina Khan is known for her tough measures during her term and has been committed to curbing the monopoly momentum of large technology companies like Meta and amazon.
However, it is noteworthy that Lina Khan is likely to leave her position in January next year. After the usa's incoming president Trump takes office officially next year, it is widely predicted that he will appoint a Republican who has a more moderate attitude towards the business environment as FTC Chair. This personnel change may render the ongoing investigation into microsoft uncertain.
Investigation into microsoft's antitrust practices.
Sources confirmed earlier this month that the FTC is investigating allegations that microsoft may be abusing its market power in the productivity software sector. It is alleged that the company is using punitive licensing terms to prevent customers from moving their data from its Azure cloud service to other competing platforms.
Additionally, the FTC is also investigating the terms related to microsoft's cybersecurity and ai products.
Previously, several competitors, including Google and amazon, had explicitly complained about microsoft's practices, stating that it locks customers into its Azure cloud service. amazon and Google are the main competitors of microsoft in the cloud computing sector.
NetChoice, the lobbying group representing online companies such as amazon and google, criticized microsoft's licensing policies and the integration of ai tools into Office and Outlook. The organization stated:
Given that microsoft is the largest software company globally, dominating the productivity software and operating system fields, the scale and consequences of its licensing decisions are extraordinary.
In September this year, google complained to the European Commission about microsoft's practices, claiming it charges customers a 400% premium to continue running Windows on its competitors' cloud computing servers, offering them limited and delayed security updates.
The direction of the investigation is still unknown.
The FTC has requested extensive details from microsoft. The FTC claims that it has jurisdiction over the investigation into competition in the ai field involving microsoft and OpenAI, and has begun investigating microsoft's $0.65 billion trade with the ai startup Inflection AI.
However, with trump set to take office next year, the ultimate direction of this investigation remains uncertain. It is unclear whether trump will ease regulations on large technology companies.
Although trump has emphasized relaxing regulations, he has also initiated several investigations into large technology companies during his previous term. The incoming vice president JD Vance has expressed concerns about these companies' influence on public opinion.