The Federal Trade Commission (FTC) has launched an antitrust investigation into Microsoft, to check whether the company is using its dominant position to destroy competition.
The regulator wants to examine practices used by Microsoft in its cloud and software licensing businesses, cybersecurity services and artificial intelligence (AI) offerings .
One of the most important areas to investigate is how Microsoft is combining its productivity and security software with its Azure cloud. The FTC's interest in Microsoft's cloud business has grown after several security incidents affecting its products. Such incidents are particularly significant, given that Microsoft is a leading software supplier to the U.S. government.
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The government's cybersecurity review board had previously said that "Microsoft's security culture was inadequate and requires review, particularly given the company's central position in the technology ecosystem." Shortly after, CEO Satya Nadella issued a memo to employees saying, "If you're faced with a dilemma between security and another priority, the answer is clear: Emphasize security."
If the FTC's antitrust investigation comes to a negative conclusion, Microsoft would find itself in a position it has been in before. The company faced an antitrust lawsuit from the Justice Department in the late 1990s over its combination of its web browser and Windows operating system.
See also: EU: Fine on Apple for antitrust practices in the App Store?
Antitrust laws are enforced by both the FTC and the U.S. Department of Justice and are designed to promote fair competition and deter monopolistic practices.
Enforcing these laws is essential to maintaining a healthy market environment where innovation can thrive, while also protecting consumers.
See also: Google accuses Microsoft of antitrust practices
The Microsoft investigation highlights regulators' ongoing efforts to hold big tech companies for their actions. There have been a number of similar cases in Europe recently, involving companies such as Google, Facebook and Amazon. The companies are facing antitrust investigations and fines from various regulators.
Source: www.theverge.com
