The U.S. Federal Trade Commission (FTC) has launched a comprehensive anti-trust probe into Microsoft’s business practices. This wide-ranging inquiry has the potential to reshape the tech industry and redefine the boundaries of market dominance.
At the heart of the investigation are allegations that Microsoft has exploited its dominant position in productivity software to impose restrictive licensing terms, discouraging customers from migrating data from its Azure cloud platform to rival services. The FTC worries that Microsoft’s dominance is also a risk for people’s data, outages like the Cloudstrike failure last July showing how Microsoft’s dominance of the sector makes any issues a major problem.
The outcome of this probe could have far-reaching implications for the tech industry and the broader competitive landscape. If the FTC finds Microsoft’s practices anticompetitive, it would mean a big change in how the company has to operate. This, in turn, would open up new opportunities for rival companies in cloud computing, cybersecurity, and productivity software.
But the FTC may not have the time to complete its investigation.
What will happen after Donald Trump becomes president?
This action coincides with a period of political transition in the U.S., as President-elect Donald Trump prepares to take office. Lina Khan’s position as head of the FTC actually ended in September, although she is staying in the role until a successor is chosen.
It is not expected that Khan will stay on under Trump, who will likely rail against investigations like this one. He has previously called the organisation the “fourth branch of government,” criticising the FTC for its perceived overreach.
What this means for the investigation is uncertain. The body currently is dominated by Democrats, with three of the five commissioners coming from that party. Trump will almost certainly choose one of the Republicans as his executive, but it remains to be seen how aggressively the FTC will go after corporations under the new administration.
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