FTC Advances Broad Antitrust Probe into Microsoft's AI and Cloud Operations

Trump's FTC pushes forward on Microsoft antitrust probe.

FTC staffers have continued to work on the investigation in recent weeks according to Bloomberg, a sign that Trump-appointed FTC Chairman Andrew Ferguson is going to prioritize scrutiny of tech giants. The probe, launched under Biden in November, is looking into Microsoft's AI projects (including its partnership with OpenAI), cloud and software licensing business, and cybersecurity services. These investigations can take years to conclude, giving Microsoft plenty of opportunities to kick up a stink about it.

FTC Reportedly 'Moves Ahead' With Microsoft Antitrust Probe

Microsoft shares are little changed in premarket trading Thursday but have lost more than 7% of their value in the past 12 months through Wednesday. The Federal Trade Commission (FTC) is "moving ahead" with its antitrust investigation of Microsoft (MSFT) that was opened during the closing days of the Biden administration, according to a Bloomberg report, showing that the watchdog under the Trump White House is continuing the crackdown on Big Tech. According to Bloomberg, citing people familiar with the matter, FTC staff in recent weeks have continued to work on the Microsoft probe. The report also said that Lina Khan, the former FTC chair under the Biden administration, had personally signed off on a civil investigative demand that was written by FTC staff and sent to the tech giant in late 2024. Bloomberg said it had viewed a copy of the demand, which is similar to a subpoena, and requires the tech firm to provide the agency with data about its artificial intelligence (AI) operations dating to 2016, according to the report. The news agency also reported that the FTC "wants to determine whether Microsoft's profits from other parts of the business give it an edge over other AI companies." Investopedia has not independently reviewed a copy of the civil investigative demand. Microsoft and the FTC did not immediately respond to requests for comment. Republican lawyer Andrew Ferguson, who was nominated by U.S. President Donald Trump, succeeded Khan as FTC head in January. Khan was known for being tough on both mergers and Big Tech. Microsoft shares are little changed in premarket trading Thursday but have lost more than 7% of their value in the past 12 months through Wednesday.

US FTC Moves Ahead With Broad Microsoft Antitrust Probe

The agency wishes to check Microsoft's profits from other business parts The US Federal Trade Commission is moving ahead with a sprawling antitrust probe of Microsoft that was opened in the waning days of the Biden Administration, signaling that Donald Trump's new FTC Chair Andrew Ferguson is going to prioritize scrutiny of tech giants. FTC staff in recent weeks have continued to work on the investigation, meeting with companies and other groups to gather information, according to people familiar with the matter, who asked not to be named discussing a confidential investigation. The FTC sent Microsoft a so-called civil investigative demand, which is similar to a subpoena, late last year. The document, a copy of which was viewed by Bloomberg, compels the company to turn over reams of data about its AI operations, including the cost to train models and obtain data, going as far back as 2016. The agency sought details about Microsoft's data centers, its struggles to find enough computing power to meet customer demand and the company's software licensing practices. The FTC is also scrutinising Microsoft's decision to slash funding on its own artificial intelligence projects after striking a deal with OpenAI, which could be perceived as hurting competition in the burgeoning AI market. One company has heard regularly from the FTC on the issue of Microsoft's licensing practices since the investigative demand was sent, said one of the people. The FTC and lawyers for that company have discussed what information the agency could ask for in a more comprehensive, formal request. The company also received a shorter list of questions several weeks ago asking for documents the company provided to other regulators. The FTC is further seeking information about licensing rule changes Microsoft said will go into effect later this year, the person said. The agency said in the information demand that it wants to determine whether Microsoft's profits from other parts of the business give it an edge over other AI companies. The agency also said it wants details about Microsoft's data center capacity constraints to better understand the costs behind cloud-computing services. Those details will help the agency determine whether to bring a case. Since receiving the FTC demand, Microsoft may have sought to narrow the scope of the information it's being asked to turn over -- a typical move by companies being probed by the agency. Such wide-ranging antitrust investigations can take years and don't always result in the agency bringing a case. "We are working cooperatively with the agency," said Alex Haurek, a Microsoft spokesman. The FTC didn't respond to a request for comment. The evolution of the probe now rests in the hands of Ferguson and his new head of competition, Daniel Guarnera, who joined the agency from the Justice Department, where he worked on antitrust cases targeting Alphabet Inc.'s Google and Apple Inc. In his first public remarks since taking the chair position in late February, Ferguson said investigating the tech sector is his highest priority. Early moves include seeking information on censorship by tech companies. Ferguson also backed a filing in January in support of billionaire Elon Musk, who sued to derail OpenAI's plans to restructure as a more conventional for-profit business. The civil investigative demand was crafted by FTC staff and personally signed off on by former Chair Lina Khan after the agency spent more than a year conducting informal interviews with Microsoft competitors and business partners, Bloomberg previously reported. Ferguson's FTC has inherited several other cases against big tech companies from Khan, including lawsuits against Meta Platforms Inc. and Amazon.com Inc. On Wednesday, the agency asked a judge to delay a trial challenging Amazon's Prime subscription practices, citing resource constraints at the agency. The FTC quickly walked back comments that resource constraints at the agency will hamper its ability to start a trial in September. A separate antitrust case against Amazon's retail business is set to go to trial in October 2026.

Report: FTC to Continue Biden Administration's Antitrust Probe of Microsoft | PYMNTS.com

An antitrust probe of Microsoft that was launched in the last days of the Biden administration will reportedly continue under the Trump administration. Federal Trade Commission (FTC) staff have continued gathering information for the investigation, Bloomberg reported Wednesday (March 12), citing unnamed sources. Neither the FTC nor Microsoft immediately replied to PYMNTS' request for comment. According to the Bloomberg report, the FTC sent Microsoft a civil investigative demand late last year demanding information about the company's artificial intelligence (AI) operations, data centers, software licensing practices and decision to cut funding on its own AI projects after making a deal with OpenAI. One company that was asked for information as part of the investigation told Bloomberg that the FTC wants to determine whether Microsoft has an edge over other AI companies because of the profits it earns from other parts of the business, per the report. The FTC's questions about the company's software licensing practices may relate to competitors' complaints about Microsoft bundling its office productivity, security software and cloud offerings, which makes it harder for them to compete, according to the report. Microsoft's decision to cancel some of its own work on AI after investing in OpenAI and using that company's software is also under scrutiny by the FTC because that move may have reduced competition in the field, per the report. Wide-ranging antitrust investigations like the one targeting Microsoft can take years and don't always result in a case brought by the FTC, the report said. Microsoft spokesmen Alex Haurek said in the report: "We are working cooperatively with the agency." It was reported in November that the FTC was set to investigate allegedly anticompetitive practices at Microsoft's cloud computing business, focusing on allegations that the tech giant illegally uses the market power of its Office 365 productivity software to benefit its Azure cloud service. In December, it was reported that Microsoft formally requested an investigation into the FTC after reports surfaced that details of the antitrust investigation were leaked. The company asked the regulator's inspector general to examine whether senior management at the agency disclosed nonpublic information about the probe.

FTC advances extensive antitrust investigation into Microsoft - Bloomberg By Investing.com

Investing.com -- The US Federal Trade Commission (FTC) is progressing with a comprehensive antitrust investigation into Microsoft Corp (NASDAQ:MSFT), according to Bloomberg, citing individials familiar with the matter. This probe was initiated during the final days of the Biden Administration and is now being pursued by Andrew Ferguson, the new FTC Chair appointed by Donald Trump. The continued investigation indicates that Ferguson is prioritizing the examination of tech giants. The FTC team has been actively working on this investigation in recent weeks. They have been meeting with various companies and groups to gather information. In late 2021, the FTC issued a civil investigative demand to Microsoft, which functions similarly to a subpoena. This legal document, a copy of which Bloomberg had access to, requires Microsoft to provide extensive data about its AI operations. The FTC wants information dating back to 2016, including the costs involved in training models and obtaining data. The FTC is also requesting details about Microsoft's data centers, the company's challenges in securing sufficient computing power to meet customer demands, and the firm's software licensing practices. The commission is further examining Microsoft's decision to cut funding for its own artificial intelligence projects after partnering with OpenAI. This move could potentially be seen as detrimental to competition in the rapidly growing AI market.