Japan Antitrust Regulator Raids Microsoft Offices in Cloud Business Investigation
Microsoft's offices in Japan were recently subjected to raids by the country's antitrust regulator, the Japan Fair Trade Commission (JFTC). These actions are part of an ongoing investigation into suspected unfair trade practices associated with the software giant's cloud computing operations, specifically its Azure platform.
Probe into Suspected Anti-Competitive Behavior
According to a report from Nikkei Asia, sources familiar with the matter indicate that the JFTC is examining whether Microsoft Japan improperly restricted customers of its Azure platform from utilizing competing cloud services. The regulator is probing a potential violation of the Antimonopoly Act and is expected to seek clarification from Microsoft's parent company in the United States.
The investigation centers on allegations that Microsoft Japan set conditions that either made it difficult to use its software on non-Azure cloud platforms or resulted in higher fees for customers opting for alternative services. This scrutiny is part of broader efforts by the JFTC to ensure fair competition in Japan's rapidly growing technology sector, where Azure competes with major players like Amazon Web Services (AWS) and Google Cloud.
Global Context of Cloud Market Scrutiny
Microsoft may have leveraged its market dominance in products such as Windows Server and Microsoft 365, with its Japan subsidiary suspected of steering customers toward Azure by limiting access to these widely used services on rival cloud platforms. This case is not isolated; regulators in Britain, Europe, and the United States have also been examining Microsoft and other companies over their cloud computing practices.
In a related development, Brazil's antitrust authority opened an administrative investigation into Microsoft's local unit last month concerning its cloud services, highlighting a global trend of increased regulatory oversight.
European Union's Investigation into Cloud Market Dominance
In November 2025, the European Union initiated an investigation into AWS and Microsoft's Azure to determine whether these platforms should be subject to rules under the Digital Markets Act aimed at curbing the market influence of major technology firms. The European Commission stated that the companies "occupy very strong positions" and would assess if they act as important gateways between businesses and consumers.
The regulator also announced it would evaluate whether the rulebook designed to address anti-competitive conduct is effective in tackling practices that limit competitiveness or are unfair in the cloud sector. This scrutiny followed several industry outages that disrupted global services, raising concerns about reliance on a limited number of providers.
Industry Outages and Regulatory Responses
An outage affecting Amazon's cloud services in October 2025 lasted approximately 15 hours, disrupting operations at hundreds of companies, including Apple, McDonald's, and Epic Games. Similarly, Microsoft's Azure faced issues in October that prevented passengers from checking in for Alaska Airlines flights and interrupted voting activities in the Scottish Parliament.
At the time, a Microsoft spokesperson expressed readiness to contribute to the European Commission's market inquiry, while an AWS spokesperson expressed confidence that regulators would find the cloud market offers choice and innovation. The EU investigation is expected to conclude within 12 months, with a final decision on regulatory approaches likely within 18 months.
