Washington: The Federal Trade Commission has intensified its antitrust investigation into Microsoft, examining whether the tech giant has unfairly leveraged its dominance in enterprise software, cloud computing and artificial intelligence to stifle competition.
According to people familiar with the matter, the FTC has recently issued civil investigative demands—similar to subpoenas—to several companies that compete with Microsoft across cloud services and business software. These firms have been asked to respond to detailed questionnaires focused on Microsoft’s licensing terms, product interoperability and bundling strategies.
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Regulators are specifically probing whether Microsoft makes it difficult for customers to run core products such as Windows and Office on rival cloud platforms, while simultaneously pushing bundled offerings that combine AI, security and identity tools with flagship software suites.
The investigation, now overseen by FTC chairman Andrew Ferguson, is also examining Microsoft’s fast-expanding AI portfolio, including its integration of Copilot across workplace applications.
AI bundling and OpenAI tie-up draw scrutiny
A significant portion of the FTC’s questions reportedly centres on Microsoft’s artificial intelligence strategy. Officials are seeking clarity on whether the company curtailed internal AI development after deepening its partnership with OpenAI, opting instead to rely heavily on OpenAI’s models—moves that could have reduced potential competition in the fast-growing AI market.
Investigators are also assessing whether embedding Copilot and related AI tools directly into Windows and Office creates unfair advantages over rival software providers.
Google’s Europe complaint adds backdrop
The renewed US action comes against the backdrop of earlier concerns raised by Google in Europe. In September 2024, Google lodged a complaint with the European Commission, alleging Microsoft was exploiting its Windows Server dominance to lock customers into its cloud platform, Microsoft Azure.
However, Google withdrew that complaint in November 2025, shortly after EU regulators launched a broader assessment of cloud-sector practices. At the time, Giorgia Abeltino, head of government affairs and public policy for Google Cloud Europe, said the company would continue engaging with policymakers and regulators to promote openness and customer choice in the cloud market.
Microsoft cites interoperability limits, security pressures
Microsoft has maintained that some of its products are not fully interoperable with rival cloud platforms due to underlying technical differences. The company has also pointed to a series of high-profile cyber incidents in recent years, arguing that tighter integration of security features into its core products is essential to protect customers.
In statements to regulators, Microsoft has said it remains committed to fair competition while investing heavily in security and resilience across its cloud ecosystem.
Amazon also in regulator crosshairs
The FTC is simultaneously pursuing a similar inquiry into Amazon Web Services, underscoring Washington’s broader push to rein in Big Tech’s influence over critical digital infrastructure.
Industry estimates show AWS currently leads the global cloud market with roughly 30% share, followed by Microsoft at around 20% and Google at about 13%.
Both probes trace their origins to investigations launched during Donald Trump’s first term, but have gained fresh momentum as cloud computing and AI become central to enterprise operations worldwide.
High stakes for Big Tech
Antitrust experts say the outcome of the FTC’s Microsoft probe could reshape how cloud services and AI tools are packaged and sold in the US, potentially forcing structural or behavioural changes across the sector.
For Microsoft, the scrutiny lands at a critical moment, as it races to cement leadership in enterprise AI while defending its cloud stronghold. For regulators, the case represents a key test of whether existing competition laws can effectively curb market concentration in the era of artificial intelligence.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
