Jamie Spencer
Microsoft is under the lens of the Federal Trade Commission (FTC) as the agency launches a sweeping investigation into the company’s business practices. The FTC recently sent a letter demanding information from Microsoft to assist in the probe, according to a source familiar with the matter.
The FTC and Microsoft declined to comment on the investigation, which was first reported by Bloomberg.
Microsoft’s Expansive Business Portfolio
Microsoft’s reach spans several industries, making it a significant player in technology and innovation. The company has emerged as a leader in artificial intelligence, fueled by its partnership with OpenAI and the development of its AI system, Copilot. These advancements build on Microsoft’s robust cloud computing, enterprise software, gaming, and hardware sectors.
This isn’t Microsoft’s first encounter with antitrust concerns. Earlier this year, European regulators considered investigating the company’s OpenAI collaboration to assess competition in the AI sector, though the inquiry was ultimately shelved.
Fallout from the Activision Blizzard Merger
Microsoft recently faced FTC opposition to its $69 billion acquisition of video game publisher Activision Blizzard, finalized in October 2023. The FTC argued the deal would create a monopoly in video game publishing—a claim Microsoft denied.
A Shift in FTC Leadership on the Horizon
The timing of the investigation coincides with President-elect Donald Trump’s return to the White House. Trump is expected to appoint new leadership for the FTC, likely replacing current Chair Lina Khan.
This change in administration could significantly impact ongoing investigations, including the one into Microsoft. Historically, Trump’s administration has taken a more lenient stance on corporate regulation, raising questions about the future of current antitrust probes.
Broader Implications for Big Tech
Microsoft’s investigation is just one part of a larger antitrust debate. Other tech giants like Apple and Amazon face their own regulatory challenges. Google, for example, is awaiting a court ruling on whether it must divest Chrome after its search business was deemed a monopoly.
The FTC has been aggressive in blocking mergers under Khan’s leadership, often in collaboration with the Department of Justice. However, the agency has faced several setbacks in tech-related cases.
FTC’s Track Record in Regulating Big Tech
The FTC has struggled to deliver decisive victories in its battles against major tech companies. For instance:
- The agency dropped a case aiming to block Meta’s purchase of virtual reality start-up Within Unlimited.
- It has not succeeded in proving that Meta’s acquisitions of Instagram and WhatsApp illegally reduced competition, despite a four-year-long investigation.
Microsoft’s Antitrust Investigation: What’s Next?
The FTC’s investigation into Microsoft adds to an already complex landscape of antitrust scrutiny in the tech industry. The outcome could shape not only Microsoft’s future but also broader regulatory approaches to big tech in the years ahead. As Trump’s administration takes shape, the fate of these investigations—and their impact on consumers and innovation—remains uncertain.
