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The US Federal Trade Commission is reportedly planning to investigate Microsoft over its pricey Azure cloud computing platform.
The US agency will determine whether Microsoft is engaging in anticompetitive practices by using restrictive license agreements with businesses that make it difficult for them to change providers because of the costs associated with switching and the agreements themselves, the Financial Times reports.
A business account for Azure, which was taken down by a crippling DDoS attack this summer, costs $14,000 or more annually. But businesses have to pay high exit fees if they decide to stop using Azure, and may pay increased subscription prices if they consider leaving. Microsoft may also face scrutiny about making Office 365 incompatible with other cloud services, the FT says.
Google previously accused Microsoft of anticompetitive practices around Azure, and Mozilla-hired researchers criticized Microsoft for pushing its Edge web browser on Windows PCs. Earlier this year, Microsoft split its Teams video conferencing app from the rest of the 365 suite due to antitrust concerns.
FTC Chair Lina Khan has made a point of probing Big Tech. Earlier this year, the FTC started looking into Google, Amazon, OpenAI, Microsoft, and Anthropic over their AI relationships and whether they promote fair competition. (The UK is also investigating whether Microsoft has been stifling competition with its hires in the AI space.)
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Apple is currently facing a rather stalled DOJ antitrust investigation, and Amazon, Google, and Meta are also facing various antitrust investigations from the DOJ or FTC.
In a February interview with Harvard Law, Khan explained her approach: "The FTC’s work is not about constraining the growth of any business or any particular company. It’s really about constraining illegal behavior. And so, as a law enforcer, that’s really our focus. And we believe that the American economy is better off and stronger when we’re cracking down on illegal business practices and allowing consumers, workers, and honest businesses to get a fair shake."
This effort may be short-lived as Donald Trump is unlikely to keep Khan on as FTC chair.
Microsoft has not yet responded to PCMag's request for comment. The FTC declined to comment.