Microsoft Under FTC Radar For Antitrust Violations In Cloud, AI Practices, Reports Say

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(RTTNews) - The U.S. Federal Trade Commission or FTC has reportedly opened an extensive antitrust investigation into Microsoft, questioning its practices in cloud computing, software licensing, cybersecurity, and artificial intelligence or AI. This inquiry arises from increasing concerns about potential anticompetitive behavior by the tech giant.

The investigation focuses on claims that Microsoft enforces restrictive licensing terms, hindering customers from transferring data from its Azure cloud service to competitor platforms.

Additionally, the FTC is examining Microsoft's integration of AI tools with Office and Outlook, as well as its cybersecurity protocols following several notable security breaches.

FTC Chair Lina Khan, who sanctioned the investigation before her anticipated departure, stressed the importance of scrutinizing major tech companies for potential anticompetitive behavior. This probe is part of a larger initiative to ensure fair competition within the tech industry.

Microsoft has chosen not to comment on the ongoing investigation, while competitors and industry groups have expressed concerns about the company's market dominance. NetChoice, representing several major online firms, criticized Microsoft's aggressive licensing and AI integration strategies, highlighting the overarching impact given Microsoft's dominance. Meanwhile, other tech giants like Meta, Apple, Amazon, and Google are also facing similar regulatory challenges.

The outcome of the investigation remains uncertain, particularly with the upcoming administrative changes and the possible appointment of a new FTC chair.

This investigation underscores the FTC's commitment to tackling antitrust issues in the technology sector, potentially leading to significant consequences for Microsoft and the industry at large.