According to informed sources, the US Federal Trade Commission (FTC) is ramping up its comprehensive antitrust investigation into microsoft and is targeting the ongoing collaboration between microsoft and ChatGPT manufacturer OpenAI.

The deal between microsoft and OpenAI grants the former exclusive rights to run OpenAI's large models on its cloud server and allows microsoft to share in OpenAI's revenue.

Currently, FTC officials are asking microsoft's competitors about the impact of its ai deals and product range, including inquiries about how microsoft sells its Co-pilot software integrated with OpenAI and how it resells OpenAI's models to developers on its Azure cloud computing platform.

These questions suggest that the direction of the FTC's investigation is whether microsoft's dominance in the cloud computing market has given the company an unfair advantage in selling ai software.

Wider investigation.

Reports indicate that the FTC's extensive investigation into microsoft began last year, during which the FTC also sought to understand industry giants in the cloud computing field, such as google, amazon, and oracle, through voluntary interviews.

Earlier this year, the FTC separately investigated the deal between OpenAI and microsoft, with similar transactions being investigated including investments by google and amazon in the ai startup Anthropic.

As of last month, the FTC has received approval from FTC Chair Lina Khan and other commissioners to begin sending civil investigative demands (CID) to microsoft and its customers and competitors. The FTC can invoke this investigative demand when investigating whether a company has engaged in so-called "unfair or deceptive acts or practices," which is a legally enforceable document in court.

Washington antitrust lawyer and former FTC assistant director David Balto stated that after issuing a CID, the FTC typically spends several months collecting information before deciding whether to file an antitrust lawsuit. In other words, if the news that the FTC is investigating microsoft through a CID is true, it will take the FTC several more months to determine whether or not to sue microsoft.

Microsoft accuses the FTC of leaking details.

Last week, media reports indicated that the FTC is conducting a wide-ranging antitrust investigation into microsoft, and revealed that the FTC's investigation covers areas including cloud and software licensing business, ai, and cybersecurity products.

In response to the FTC's actions, microsoft's Vice President and Deputy General Counsel Rima Alaily accused the FTC management of leaking investigation details, violating the agency's own ethical guidelines, and stated that the details reported by the media clearly came from within the FTC.

As the content of the FTC investigation is confidential information, microsoft's side has requested the USA FTC Inspector General to investigate whether the agency's management improperly leaked news of the antitrust investigation into microsoft, and demanded that the investigation results be made public.

In recent years, microsoft has not received much attention as a target of antitrust litigation, while its large tech peers have been the subject of complaints from USA regulators. However, due to significant cybersecurity issues, the acquisition of gaming studio Activision Blizzard, and cooperation with OpenAI, the company is facing increasing scrutiny in both the USA and europe.

However, any existing investigation will ultimately depend on how the incoming Trump administration views the matter.