The Federal Trade Commission (FTC) has initiated a comprehensive investigation into the business practices of Microsoft, signaling the start of a significant legal undertaking that the new Trump administration will need to decide whether to pursue or discontinue.
The inquiry is focusing on Microsoft’s cloud computing sector along with its associated offerings, such as artificial intelligence and cybersecurity. This information was shared by a source who spoke under the condition of anonymity, as they were not authorized to provide details publicly.
This investigation represents the latest chapter in a vigorous three-year campaign of antitrust enforcement led by FTC Chair Lina Khan. Appointed by President Joe Biden, Khan took the reins of the agency with a commitment to imposing stricter oversight on monopolistic practices among major technology firms.
Previously, Khan’s FTC faced a setback when it sought to challenge Microsoft’s acquisition of Activision Blizzard for $69 billion, which a federal judge ultimately allowed to proceed.
The current investigation dives deeper into the fundamental operations of Microsoft, marking a significant moment not seen in the U.S. since the company’s antitrust confrontation with the Justice Department during the 1990s.
Bloomberg News was the first to report on the investigation last week. The investigation will move forward based on whether the soon-to-be-appointed chair of the FTC under President-elect Donald Trump decides to continue pursuing the matter legally. Analysts suggest that Trump’s administration may adopt a more lenient stance toward technology companies, although incoming Vice President JD Vance has expressed support for Khan’s approach to antitrust enforcement.