Microsoft Corp. (NASDAQ:MSFT) is confronting a federal investigation that could reshape the technology industry's competitive landscape, with regulators examining the company's potentially anticompetitive practices in cloud computing and artificial intelligence markets.
What Happened: The U.S. Federal Trade Commission has initiated a broad investigative effort focusing on Microsoft's licensing strategies and market conduct, particularly within its Azure cloud service ecosystem. Reuters report, which cited sources, reveals that the probe extends beyond traditional technological assessments, delving into intricate questions about market power and consumer choice.
The probe, approved by FTC Chair Lina Khan before her anticipated departure, centers on allegations that Microsoft is exploiting its market power to restrict customer mobility between cloud platforms.
Tech industry observers note the investigation represents a significant moment for Microsoft, traditionally viewed as more collaborative compared to other Big Tech entities.
Microsoft did not immediately respond to Benzinga's request for comment.
The investigation emerges against a backdrop of intensifying regulatory scrutiny of Big Tech companies. While firms like Meta Platforms (NASDAQ:META), Apple Inc. (NASDAQ:AAPL), and Amazon.com Inc. (NASDAQ:AMZN) have faced similar antitrust challenges, Microsoft has traditionally navigated these waters with greater apparent ease.
What Happened: Regulatory challenges are emerging across multiple technological fronts, with NetChoice and other industry groups highlighting potential barriers that might prevent customers from seamlessly transitioning between cloud platforms.
The timing of the probe adds complexity, occurring during a potential presidential transition that could dramatically alter enforcement priorities.
Price Action: Microsoft stock closed at $422.99 on Wednesday, down 1.17% for the day. In after-hours trading, the stock dipped further 0.24%. Year-to-date, Microsoft has gained 14.05%, according to data from Benzinga Pro.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
