FTC to Investigate Microsoft's Cloud Computing Division for Anti-Competitive Practices

The US Federal Trade Commission (FTC) is gearing up to investigate Microsoft for potentially anti-competitive practices within its cloud computing division. This inquiry centers on concerns that Microsoft might be leveraging its market dominance to dissuade customers from switching to rival platforms. The scrutiny focuses on practices such as raising subscription fees substantially for those transitioning to other providers, imposing high exit charges, and allegedly making Office 365 less compatible with competitor services.

Reportedly, the FTC's move aligns with a broader effort to address Big Tech's influence in sectors like cloud services, a push led by FTC Chair Lina Khan with bipartisan support. The agency seeks to curb monopolistic behavior in the industry, reflecting growing concerns about tech giants' market power and manipulation tactics.

As per reports, multiple federal agencies have raised issues regarding restrictive software licensing practices impacting cost increases and choice limitations in cloud service providers or architectures. Agencies like the Department of Justice, NASA, and the Social Security Administration highlight challenges faced due to these practices. While some entities took actions to mitigate potential impacts, others encountered roadblocks due to restricted software usage policies.

Key players involved in this landscape emphasize the significance of aligning agency-wide guidance to address the implications of restrictive licensing practices on cloud initiatives. By identifying and managing potential impacts effectively, entities can navigate the evolving cloud landscape while ensuring efficient operations and minimizing risks associated with monopolistic practices.