FTC Deepens Microsoft Antitrust Scrutiny

The Federal Trade Commission has intensified its investigation into Microsoft, examining whether the company uses its strength in enterprise software, cloud infrastructure and artificial intelligence to disadvantage competitors.

According to people familiar with the matter, regulators have sent formal information demands to rival providers, seeking detail on licensing practices, interoperability barriers and the way products are packaged together.

A central question is whether customers face friction when trying to run Windows or Office workloads outside Microsoft Azure. Investigators are also studying whether bundling security, identity and AI capabilities into major subscriptions creates structural lock-in.

Officials are reviewing how Microsoft has woven Microsoft Copilot into everyday productivity software. The concern is that deeply embedding AI features may tilt the playing field before alternatives can mature.

The agency is also examining Microsoft’s reliance on OpenAI, asking whether the partnership reshaped internal development paths in ways that could narrow future competition.

The American probe follows earlier tensions overseas, where Google had raised objections about cloud market dynamics before withdrawing its complaint amid broader regulatory reviews.

Microsoft argues that technical architecture differences limit portability in some scenarios and that tighter integration helps defend customers against escalating cyber threats. The company says it supports fair competition while prioritising resilience. At the same time,the Regulators are also scrutinising Amazon Web Services, signalling a broader reassessment of concentration in digital infrastructure.

With AI now embedded in core business workflows, decisions made in this case could redefine how platforms bundle innovation. The outcome may influence pricing models, partnership structures and the pace at which new entrants can challenge incumbents.

For both government and industry, the investigation is a test of how antitrust frameworks adapt to the age of intelligent software.