FTC Launches Investigation Into Microsoft Cloud Practices
The Federal Trade Commission investigates whether Microsoft uses anti-competitive tactics like steep exit fees and restrictive licensing to trap cloud customers. The outcome remains uncertain due to potential leadership changes under the incoming administration.
The Federal Trade Commission launches an investigation into Microsoft's cloud business practices to determine if the tech giant uses anti-competitive tactics to maintain its market dominance. According to reports, the agency focuses on allegations that Microsoft imposes punitive licensing agreements designed to prevent customers from moving their data off of its platforms.
As part of the probe, the FTC examines claims that Microsoft hikes subscription fees for customers who attempt to leave, deliberately makes its products incompatible with rival services, and charges steep exit fees. These specific concerns align closely with feedback the agency received last year when it sought public comment on restrictive software licensing and high data transfer fees across the cloud industry.
The ultimate progress of this investigation remains uncertain because of the upcoming change in presidential administrations. FTC Chair Lina Khan's tenure likely ends when Donald Trump takes office, and the incoming president is widely perceived to favor deregulation over strict antitrust enforcement.