New York – Microsoft is facing a comprehensive investigation by the Federal Trade Commission (FTC), the nation’s top antitrust watchdog. The FTC has launched a probe into the tech giant’s business practices, demanding information from Microsoft to aid in the investigation, according to a source familiar with the matter.
The investigation comes as Microsoft’s business continues to expand rapidly, with the company making significant investments in the artificial intelligence space through partnerships like OpenAI and the development of its own AI system, Copilot. In addition, Microsoft is a prominent player in cloud computing, enterprise software, gaming, and device businesses.
This is not the first time Microsoft has faced antitrust concerns. Earlier this year, European officials considered investigating Microsoft’s OpenAI partnership to assess competition in the AI field. The company has also encountered resistance from the FTC in its acquisition of video game publisher Activision Blizzard, a deal worth $69 billion that closed in October 2023.
The timing of the investigation is notable as President-elect Donald Trump prepares to return to the White House. Questions loom about how his administration will handle ongoing antitrust cases, including those against tech giants like Apple and Amazon. The FTC, under the leadership of current chair Lina Khan, has blocked numerous mergers and acquisitions but has faced challenges in regulating big tech companies.
The new administration could potentially impact the outcome of ongoing investigations at the FTC. As the tech industry faces increasing scrutiny over antitrust concerns, the actions taken by regulatory agencies like the FTC will be closely watched. The outcome of the investigation into Microsoft’s practices could have broader implications for the tech industry as a whole.
The FTC, known for its role in overseeing competition in various sectors of the economy, will continue to monitor and investigate companies like Microsoft to ensure compliance with antitrust laws. The relationship between the government and technology companies like Microsoft will likely be an area of focus in the coming months as regulatory bodies seek to address concerns about market competition and consumer protection.