The US Federal Trade Commission has opened a broad antitrust investigation into Microsoft, including of its software licensing and cloud computing businesses, a source familiar with the matter said on Wednesday.
The probe was approved by FTC Chair Lina Khan ahead of her likely departure in January. The election of Donald Trump as US president, and the expectation he will appoint a fellow Republican with a softer approach toward business, leaves the outcome of the investigation up in the air.
The FTC is examining allegations the software giant is potentially abusing its market power in productivity software by imposing punitive licensing terms to prevent customers from moving their data from its Azure cloud service to other competitive platforms, sources confirmed earlier this month.
The FTC is also looking at practices related to cybersecurity and artificial intelligence products, the source said on Wednesday.
Microsoft declined to comment on Wednesday.
Competitors have criticized Microsoft’s practices they say keep customers locked into its cloud offering, Azure. The FTC fielded such complaints last year as it examined the cloud computing market.
NetChoice, a lobbying group that represents online companies including Amazon and Google, which compete with Microsoft in cloud computing, criticized Microsoft’s licensing policies, and its integration of AI tools into its Office and Outlook.
“Given that Microsoft is the world’s largest software company, dominating in productivity and operating systems software, the scale and consequences of its licensing decisions are extraordinary,” the group said.
Google in September complained to the European Commission about Microsoft’s practices, saying it made customers pay a 400 percent mark-up to keep running Windows Server on rival cloud computing operators, and gave them later and more limited security updates.
The FTC has demanded a broad range of detailed information from Microsoft, Bloomberg reported earlier on Wednesday.
The agency had already claimed jurisdiction over probes into Microsoft and OpenAI over competition in artificial intelligence, and started looking into Microsoft’s $650 million deal with AI startup Inflection AI.
Microsoft has been somewhat of an exception to US antitrust regulators’ recent campaign against allegedly anticompetitive practices at Big Tech companies.
Facebook owner Meta Platforms, Apple, and Amazon.com Inc. have all been accused by the US of unlawfully maintaining monopolies.
Alphabet’s Google is facing two lawsuits, including one where a judge found it unlawfully thwarted competition among online search engines.
Microsoft CEO Satya Nadella testified at Google’s trial, saying the search giant was using exclusive deals with publishers to lock up content used to train artificial intelligence.
It is unclear whether Trump will ease up on Big Tech, whose first administration launched several Big Tech probes. JD Vance, the incoming vice president, has expressed concern about the power the companies wield over public discourse.
Still, Microsoft has benefited from Trump policies in the past.
In 2019, the Pentagon awarded it a $10 billion cloud computing contract that Amazon had widely been expected to win. Amazon later alleged that Trump exerted improper pressure on military officials to steer the contract away from its Amazon Web Services unit.
Microsoft faces wide-ranging US antitrust probe
https://arab.news/4zj5v
Microsoft faces wide-ranging US antitrust probe
- Competitors complain Microsoft locks customers into its cloud service
- FTC earlier set the stage for probe into Microsoft’s role in AI market
DCO and Arab News partner to combat digital misinformation, explore AI’s impact on media
KUWAIT CITY: The Digital Cooperation Organization (DCO) and the international Saudi newspaper Arab News have signed a Letter of Engagement aimed at strengthening knowledge and expertise exchange on the impact of artificial intelligence in the media sector, as well as leveraging expert insights to develop best practices to combat online misinformation amid accelerating technological advancements.
DCO said this step aligned with its efforts to strengthen collaboration with international media institutions to support responsible dialogue around digital transformation and contribute to building a more reliable, inclusive, and sustainable digital media environment.
Commenting on the agreement, Deemah AlYahya, Secretary-General of the Digital Cooperation Organization, said: “At a moment when AI is reshaping how truth is produced, distributed, and trusted, partnership with credible media institutions is essential.”
She added that “working with Arab News allows us to bridge technology and journalism in a way that protects integrity, strengthens public trust, and elevates responsible innovation. This collaboration is about equipping media ecosystems with the tools, insight, and ethical grounding needed to navigate AI’s impact, while ensuring digital transformation serves people and their prosperity.”
Faisal J. Abbas, Editor-in-Chief of Arab News, emphasized that the partnership enhances media institutions’ ability to keep pace with technological shifts, noting that engagement with representatives of DCO Member States enables deeper understanding of emerging technologies and regulatory developments in the digital space.
He added: “DCO’s commitment to initiatives addressing online content integrity reflects a clear dedication to supporting a responsible digital environment that serves societies and strengthens trust in the digital ecosystem.”
The Letter of agreement was signed on the sidelines of the Fifth DCO General Assembly held in Kuwait City under the theme “Inclusive Prosperity in the Age of AI”, alongside the second edition of the International Digital Cooperation Forum, held from 4–5 February, which brought together ministers, policymakers, business leaders, entrepreneurs, and civil society representatives from more than 60 countries to strengthen international cooperation toward a human-centric, inclusive, and sustainable digital economy.
