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Trump's FTC advances broad antitrust probe of Microsoft, Bloomberg News reports

Trump's FTC advances broad antitrust probe of Microsoft, Bloomberg News reports

  • 12 hours ago
  • msn.com
  • Keywords: Antitrust Probe, Microsoft

The FTC is advancing an antitrust probe against Microsoft, focusing on software licensing and cloud computing. Investigating allegations of market abuse, punitive licensing terms, AI funding cuts, and cybersecurity practices.

Microsoft ReportsMicrosoft Products

Estimated market influence

Microsoft

Microsoft

Negative
Analyst rating: Strong buy

The FTC is investigating Microsoft for potential antitrust violations, which could negatively impact its business operations and reputation.

Federal Trade Commission (FTC)

Positive
Analyst rating: N/A

The FTC's investigation aims to ensure fair competition in the market, potentially benefiting consumers and other businesses.

Context

Analysis of Trump's FTC Antitrust Probe into Microsoft

  • Antitrust Investigation Initiated: The U.S. Federal Trade Commission (FTC) has advanced an antitrust probe into Microsoft, initially opened near the end of the Biden administration.
  • Scope of Investigation: The probe covers Microsoft's software licensing and cloud computing businesses, focusing on allegations of potential market abuse in productivity software and punitive licensing terms to deter customers from switching to rival cloud platforms (e.g., Azure).
  • Areas Under Scrutiny:
    • Microsoft's data center challenges and struggles to meet customer demand for computing power.
    • Licensing rule changes expected later this year.
    • Microsoft's cybersecurity and artificial intelligence products, including its decision to cut funding on its own AI projects after partnering with OpenAI.
  • FTC Leadership Change: The investigation was approved by former FTC Chair Lina Khan before her departure. Andrew Ferguson, the new FTC Chair under President Trump, is leading the probe.
  • Market Implications:
    • Potential regulatory scrutiny could impact Microsoft's competitive positioning in cloud computing and AI markets.
    • Competitors like Amazon (AWS) and Google may benefit if Microsoft's practices are curtailed.
    • The investigation highlights broader antitrust concerns in tech monopolies and market dominance.
  • Strategic Considerations:
    • Microsoft's licensing terms and investment strategies in AI will likely come under increased regulatory focus.
    • The probe underscores the importance of compliance with antitrust regulations in highly competitive industries.