US FTC ramps up scrutiny of Microsoft over AI, cloud practices, questions rivals, Bloomberg reports

The U.S. Federal Trade Commission (FTC) has intensified its investigation into Microsoft’s business practices concerning artificial intelligence and cloud computing. According to Bloomberg reports, the FTC has recently issued civil investigative demands to several of Microsoft’s competitors in the enterprise software and cloud markets. These requests seek detailed information related to Microsoft’s licensing strategies and bundling of AI, security, and identity software into its broader product suite, including Windows and Office. The inquiry aims to determine if Microsoft is leveraging its market dominance to impose restrictive or punitive licensing terms that make it difficult for customers to move data or applications to rival cloud platforms.

This investigation, initiated in 2024 under then-Chair Lina Khan, also explores Microsoft’s relationship with OpenAI, data center operations, AI research spending, and the effects of its significant investment in OpenAI on competition in the AI sector. There are concerns that Microsoft’s bundling of AI features like Microsoft Copilot may create opaque consumption metrics and constraints for IT administrators trying to disable these services, potentially hampering customer choice.

The FTC’s scrutiny reflects broader regulatory attention on how leading technology firms integrate and leverage AI in their ecosystems, raising key questions about competitive fairness, market power, and consumer impact in rapidly evolving cloud and AI markets. This probe underscores the increasing role of regulators in ensuring transparency and fairness in AI deployment strategies among dominant tech companies.