Microsoft under fire: FTC launches antitrust investigation

US technology company Microsoft has found itself in the crosshairs of the Federal Trade Commission (FTC), which has launched a wide-ranging investigation into its business practices. The move comes at a time when tech giants are facing increased pressure from regulators over suspected monopolistic behaviour and distortions of competition.

Microsoft and the FTC: What's going on?

According to sources familiar with the situation, the FTC has sent a formal requestto Microsoft $MSFT to provide information that could help in the investigation. The details remain a mystery for now, as neither the FTC nor Microsoft has officially commented on the matter. Bloomberg was the first to report the launch of the investigation.

Microsoft is one of the key players in the field of modern technology, particularly through its investment in artificial intelligence (AI) through its partnership with OpenAI and its own AI platform Copilot. This platform builds on the company's strong background in cloud services, enterprise software, gaming and hardware.

Microsoft's antitrust litigation history

This isn't the first time Microsoft has run afoul of antitrust regulators. It previously faced a possible investigation by European authorities over its partnership with OpenAI, but there was no formal investigation at the time.

Another significant chapter was the FTC's fight against the $69 billion acquisition of gaming giant Activision Blizzard. The FTC claimed that the move could give Microsoft a monopoly in the video game market, a claim the company rejected. The acquisition was eventually completed in October 2023.

Changes in FTC leadership and their impact

The investigation comes at a time of expected change in the FTC's leadership. Following the re-election of Donald Trump as US President, it is expected that current FTC Chairwoman Lina Khan will be replaced by new leadership, which could impact the ongoing investigation.

The Trump administration could change course in antitrust cases involving not only Microsoft but also other tech giants such as Apple, Amazon and Google. For example, a federal court will soon decide whether Google will be forced to sell Chrome after its search business was labeled a monopoly.

Fighting monopolies: Mixed results

The FTC, led by Lina Khan, has blocked dozens of mergers and acquisitions so far, but has suffered defeats in some cases. For example, two years ago it dropped a lawsuit against Meta, which wanted to buy startup Within Unlimited. The FTC also failed to prove that Meta illegally restricted competition with its acquisitions of Instagram and WhatsApp.

The Microsoft investigation thus adds another chapter to the complex relationship between tech giants and regulators. The question remains whether the new administration will bring about changes in its approach to regulating big tech companies.

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