The potential investigation follows the FTC's Request for Information (RFI) on cloud computing business practices in March 2023, which raised concerns about competition. The FTC has not yet formally requested information from Microsoft. This comes as Microsoft is expanding its AI infrastructure globally, with its cloud revenue reaching $38.9 billion in the fiscal first quarter, a 22% increase year over year.
Key takeaways:
- The Federal Trade Commission (FTC) is reportedly set to investigate allegedly anti-competitive practices at Microsoft’s cloud computing business, focusing on allegations that Microsoft uses the market power of its Office 365 software to benefit its Azure cloud service.
- Allegations include Microsoft increasing subscription fees for customers who leave, charging steep exit fees, and making its Office 365 products incompatible with competitive cloud providers.
- The potential investigation comes after the FTC sought public comment on the business practices of cloud computing providers and found that most of the responses it received raised concerns about competition.
- Microsoft is seeing demand for cloud and other services driven in part by the demand for artificial intelligence (AI), with the company reporting that Microsoft Cloud revenue reached $38.9 billion in its fiscal first quarter, up 22% year over year.