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Trump's FTC advances broad antitrust probe of Microsoft: Report

Trump's FTC advances broad antitrust probe of Microsoft: Report

  • 4 hours ago
  • thehindu.com
  • Keywords: Antitrust Probe, Microsoft, FTC

The U.S. Federal Trade Commission is advancing an antitrust probe into Microsoft, focusing on its market power in productivity software, cloud services, and AI practices. The investigation was initiated under Trump's tenure and continues to gather information from various sources.

Microsoft Reports

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.

FTC

Positive
Analyst rating: N/A

As the regulatory body, the FTC's actions are aimed at enforcing competition laws, which can have a positive effect on market dynamics.

Context

Analysis of Trump's FTC Antitrust Probe Against Microsoft

Overview

  • Date: March 13, 2025
  • Initiator: U.S. Federal Trade Commission (FTC) under the Trump administration
  • Probe Focus: Microsoft's market practices in software licensing and cloud computing

Investigation Details

  • Opened During: Waning days of the Biden administration
  • Approved By: Lina Khan, former FTC chair, before her departure
  • New Chair: Andrew Ferguson (appointed under Trump)

Key Areas of Scrutiny

  • Software Licensing: Alleged punitive terms to deter customers from switching cloud platforms
  • Cloud Computing: Focus on Azure's market dominance and customer retention tactics
  • Artificial Intelligence: Microsoft's AI funding cuts post-OpenAI deal
  • Cybersecurity Practices: Potential regulatory concerns

Market Implications

  • Competition Impact: Threatens Microsoft's ability to leverage its dominant position in productivity software and cloud services
  • Industry Dynamics: May encourage smaller competitors and startups in the tech sector
  • Regulatory Landscape: Signals increased antitrust enforcement under Trump, potentially affecting other major tech companies

Competitive Considerations

  • Customer Lock-In Tactics: Alleged use of restrictive licensing to prevent migration to rival platforms
  • Data Centers and Demand: FTC's interest in Microsoft's infrastructure challenges and capacity issues
  • Licensing Changes: Scrutiny over upcoming rule modifications

Long-Term Effects

  • Potential Outcomes: Legal consequences, business model adjustments, or increased competition in key markets
  • Industry-Wide Impact: Could set a precedent for antitrust actions against tech giants