FTC to probe whether Microsoft’s cloud clout crosses the line

Steven

FTC to probe whether Microsoft’s cloud clout crosses the line

Summary

The US Federal Trade Commission has broadened an antitrust inquiry into Microsoft, issuing civil investigative demands to multiple competitors to gather detailed information about Redmond’s cloud, AI, security and identity-related practices. Regulators are probing whether Microsoft makes it difficult or more expensive for customers to run its software on rival clouds, and are seeking data on licensing terms, model training costs and data-centre operations. The move follows earlier requests for AI-related information in 2024 and sits alongside parallel scrutiny from the UK Competition and Markets Authority and EU antitrust investigators. The situation recalls past US government action against Microsoft over desktop dominance in the 1990s.

Key Points

  • The FTC has sent civil investigative demands to at least half a dozen Microsoft competitors as part of a widening probe.
  • Requests focus on licensing terms, training costs for AI models, data-centre operations, and business practices that could disadvantage rival cloud platforms.
  • Regulators are particularly interested in whether Microsoft makes it costly or technically difficult to run Windows Server and other software on third-party clouds.
  • The CMA in the UK and the European Commission are also scrutinising Microsoft’s position in cloud and on-premises software markets.
  • Historical context: the inquiry echoes the US Department of Justice’s long-running 1990s case about Microsoft using desktop dominance to stifle competition.
  • Outcomes could affect enterprise cloud pricing, migration choices and vendor licensing behaviour across the industry.

Context and relevance

This action is part of a wider global turn towards stricter oversight of major cloud and AI providers. The FTC’s probe matters because it could reshape how enterprise customers licence and run Microsoft software, influence cloud competitiveness (notably between Azure, AWS and Google Cloud), and set precedents for regulators handling platform power in AI and cloud markets. Businesses that plan cloud migrations, negotiate licences, or build AI systems should watch developments closely.

Author style

Punchy: This isn’t just another regulatory nibble — it’s a major agency formally gathering evidence that could force real change in cloud licensing and vendor conduct. If you buy, run or move Windows workloads or AI services, the details here could matter to your costs and strategy.

Why should I read this?

Short version: if your organisation pays for cloud, runs Microsoft software, or worries about vendor lock‑in, this could change the bill and the options on the table. We’ve saved you the time of sifting through the regulator noise — the probe could reshape how easy and expensive it is to run Microsoft workloads off Azure.

Source

Source: https://go.theregister.com/feed/www.theregister.com/2026/02/16/ftc_microsoft/