FTC Ramps Up Antitrust Investigation into Microsoft's Enterprise Practices
The US Federal Trade Commission (FTC) is reportedly intensifying its scrutiny of Microsoft as part of an ongoing antitrust probe. According to a Bloomberg report, the agency is examining whether the tech giant has illegally monopolized significant portions of the enterprise computing market through its cloud software and artificial intelligence offerings, such as Copilot.
Civil Investigative Demands Issued to Competitors
In recent weeks, the FTC has issued civil investigative demands to companies that compete with Microsoft in the business software and cloud computing sectors. These demands, which function similarly to civil subpoenas, include a list of questions about Microsoft's licensing and other business practices. Sources familiar with the confidential investigation, who requested anonymity, confirmed these details to Bloomberg.
Focus on Licensing and AI Integration
The probe, now overseen by FTC Chairman Andrew Ferguson, primarily targets Microsoft's licensing practices. Key areas of inquiry include:
- Whether Microsoft makes it more difficult for customers to use products like Windows and Office on rival cloud services.
- How Microsoft bundles AI, security, and identity software into its core products, potentially stifling competition.
- Concerns that Microsoft canceled some of its own AI projects after investing in OpenAI, which may have eliminated potential competitors.
Approximately one-third of the questions are centered on Microsoft's AI business, reflecting regulatory worries about anti-competitive behavior in this rapidly evolving sector.
Google's Withdrawn EU Complaint and Microsoft's Response
In a related development, Google filed a complaint with the European Commission in September 2024, alleging that Microsoft was using its dominant Windows Server operating system to hinder competition and lock customers into its Azure cloud platform. However, Google withdrew this complaint in November 2025 after EU regulators announced a separate investigation into cloud sector practices.
Giorgia Abeltino, head of government affairs and public policy for Google Cloud Europe, stated in a blog post that the withdrawal was due to the EC's new assessment process, emphasizing Google's continued advocacy for choice and openness in cloud markets.
Microsoft has defended its practices, noting that some products are not fully interoperable with rival clouds due to differing underlying technologies. The company also faces pressure to enhance security features in its core products following a series of damaging hacks.
Broader FTC Scrutiny of Cloud Giants
The FTC is also advancing a similar antitrust effort targeting Amazon, with both cases originating during Donald Trump's first term. Amazon leads the cloud computing market with a 30% share, followed by Microsoft at 20% and Google at 13%, highlighting the competitive landscape under regulatory review.
