U.S. Regulators Plan to Investigate Microsoft’s Cloud Business
The Federal Trade Commission (FTC) in the United States is reportedly preparing to initiate an investigation into Microsoft (NASDAQ:MSFT) regarding anti-competitive practices in its cloud computing business. According to individuals with direct knowledge of the matter, the FTC is examining allegations that Microsoft has abused its market power in productivity software by imposing punitive licensing conditions to prevent customers from transferring their data from the Azure cloud service to competing platforms. Among the tactics being scrutinized are reportedly significant increases in subscription fees for departures, the imposition of high exit fees, and making Office 365 products incompatible with rival clouds. These individuals stated that the FTC has not yet officially requested any documents or other information from Microsoft as part of the investigation. A move to challenge Microsoft's cloud business would represent another offensive by FTC Chair Lina Khan against Big Tech, focusing on aggressively curtailing the monopolistic powers of companies like Meta and Amazon (NASDAQ:AMZN).