FTC reportedly begins investigating Microsoft’s cloud business practices

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2024-11-15 10:00:03

The FTC is reportedly readying an investigation into whether Microsoft used anti-competitive tactics to maintain a dominant position in the cloud market.

According to Financial Times, the agency is looking into allegations that Microsoft imposed punitive licensing agreements to prevent customers from moving data off its platforms. Sources told FT that the FTC is also investigating claims Microsoft hiked subscription fees for customers who wanted to leave, made its products incompatible with rivals, and charged steep exit fees.

Last year, the FTC sought public comment on major cloud providers’ business practices. Most commenters highlighted restrictive software licensing, minimum spend contracts, and high data transfer fees as areas of anticompetitive concern.

It’s unclear how far the FTC’s investigation will progress. FTC chair Lina Khan’s tenure may end with the start of Donald Trump’s presidency, and Trump is generally perceived as on the side of deregulation.