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Microsoft faces wide-ranging US antitrust probe

Competitors have criticised Microsoft’s practices they say keep customers locked into its Azure cloud service

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The Microsoft headquarters campus in Redmond, Washington. Photo: Getty Images/TNS

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.

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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.

Microsoft CEO Satya Nadella speaks at the company’s annual developer conference in Seattle, Washington, US, May 21, 2024. Photo: Reuters
Microsoft CEO Satya Nadella speaks at the company’s annual developer conference in Seattle, Washington, US, May 21, 2024. Photo: Reuters

Competitors have criticised 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.

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