FTC Investigates Microsoft’s Cloud Practices
The Federal Trade Commission (FTC) is preparing to investigate Microsoft's cloud computing business over potential anti-competitive practices. The inquiry focuses on allegations that Microsoft may be using its market dominance in productivity software to enforce restrictive licensing terms, making it difficult for customers to move their data from Azure to other cloud platforms.
The investigation will look into tactics such as significantly increasing subscription fees for departing customers, imposing high exit fees, and potentially making Office 365 incompatible with competing cloud services.
This move aligns with FTC Chair Lina Khan's focus on regulating Big Tech. Though Khan will be replaced by president-elect Donald Trump, scrutiny of tech giants is expected to persist.
A formal probe follows industry feedback signaling competitive concerns. Similar investigations by UK and EU regulators are already underway.
Cloud services spending is rising sharply, projected to reach $825bn by 2025, with Microsoft holding a 20% global market share, trailing Amazon Web Services but leading Google Cloud.
Microsoft has expressed concerns over Google's alleged anti-competitive tactics. Both the FTC and Microsoft have declined to comment.
