Dec 3, 2024, 12:00 AM
Dec 2, 2024, 8:34 PM

FTC investigates Microsoft business practices amid antitrust scrutiny

Highlights
  • The FTC has launched a broad investigation into Microsoft's cloud computing and other business practices.
  • This legal inquiry will be influenced by how the incoming Trump administration chooses to proceed.
  • The investigation is expected to have significant implications for Microsoft's operations and the broader tech industry.
Story

In the United States, the Federal Trade Commission (FTC) has initiated a comprehensive investigation into Microsoft's business operations, particularly focusing on its cloud computing services, artificial intelligence products, and cybersecurity efforts. This investigation marks a significant legal undertaking that must be addressed by the incoming Trump administration, which could either continue or dismiss the proceedings. The inquiry is part of a broader trend of rigorous antitrust enforcement under the leadership of FTC Chair Lina Khan, appointed by President Joe Biden, who has emphasized a crackdown on monopolistic practices in the technology sector. The scrutiny of Microsoft signifies a potentially pivotal moment for the company, reminiscent of its notorious antitrust struggles with the U.S. Justice Department in the 1990s. This investigation follows a previous setback for Khan's FTC, where a federal court declined to block Microsoft’s acquisition of Activision Blizzard, a deal valued at $69 billion. While the FTC is armed with a mandate for tougher regulations on Big Tech, the future of this particular investigation rests on the priorities of President-elect Donald Trump’s designated FTC leadership. Analysts anticipate that a shift in enforcement philosophy may accompany Trump’s administration, with some signs suggesting a less aggressive approach towards technology giants. However, incoming Vice President JD Vance has expressed support for Khan's initiatives, which could indicate a blend of continuity and change in FTC strategies. This circumstance sets the stage for a complex dynamic surrounding the investigation as it unfolds, with the potential for significant implications on Microsoft's operations and the tech industry's regulatory landscape. Overall, the FTC's investigation into Microsoft could reshape the competitive landscape of the tech sector, ushering in new challenges for the company and potentially altering the trajectory of its strategic decisions in the long run. The outcome will depend heavily on the Biden administration's willingness to empower the FTC and the approach taken by Trump's future appointees at the agency.

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