US launches antitrust investigation against Microsoft

A Microsoft is being investigated by Federal Trade Commission (FTC) in a wide-ranging antitrust investigation, becoming the fifth major technology company to face this type of scrutiny in recent years. The analysis covers the company’s cloud and software licensing businesses, cybersecurity services and artificial intelligence (AI) offerings.

According to Bloombergciting sources close to the case, the FTC is evaluating how Microsoft combines productivity and security software with its Azure cloud platform, as well as examining recent security incidents that have affected its products. These issues have gained prominence due to Microsoft’s central role as a software provider to US government agencies. Both the FTC and Microsoft declined to comment on the investigation.

Impact on security and internal responses

Attention to the security of Microsoft products has been intensified following the Cyber Safety Review Board concluded, at the beginning of this year, that the “Microsoft’s security culture was inadequate and needed an overhaul, especially considering its relevance in the technology ecosystem”. In response, Microsoft CEO Satya Nadella sent an internal memo to employees emphasizing: “If you are faced with a choice between security and another priority, the answer is clear: choose security.”

History of antitrust battles

If the FTC chooses to sue Microsoft, the company will revisit a familiar scenario, albeit from another era. In the 1990s, Microsoft faced antitrust action from the US Department of Justice over its packaging of Internet Explorer with the Windows operating system, a move that was instrumental in destroying Netscape.

Slack and Zoom, in particular, argue that Microsoft’s strategy of providing free Teams video conferencing software with Word and Excel creates an unfair competitive advantage.

Since then, the company has managed to escape the level of antitrust scrutiny applied to giants like Amazon, Apple, Meta and Google, which are currently facing similar lawsuits.

Changes in the political landscape

While the current majority-Democratic FTC panel is expected to change with the next administration, it is unclear whether the investigation will continue under new leadership. However, the Trump administration’s past actions against Google and Meta indicate that there is precedent for maintaining focus on big technology companies, regardless of leadership.