Microsoft Under Scrutiny? FTC Reportedly Intensifies Probe Into Tech Giant’s Cloud And AI Practices

According to a Bloomberg report, the probe focuses on the company’s licensing rules and bundling of services such as Copilot, Office, and Windows with other products.

• In recent weeks, the FTC has issued civil investigative demands to several companies that compete with Microsoft.
• The FTC’s demands seek evidence that Microsoft may be restricting customers from using Windows, Office, and other software on rival cloud platforms.
• In the U.K., the company faces allegations of overcharging British businesses that use Windows Server on rival cloud platforms.

The U.S. Federal Trade Commission is reportedly intensifying its investigation into Microsoft Corp. (MSFT) over concerns the tech giant may be using its dominant position in cloud software and AI to limit competition. 

According to a Bloomberg report, the probe focuses on the company’s licensing rules and bundling of services such as Copilot, Office, and Windows with other products.

Focus On Licensing And Bundling

In recent weeks, the FTC has issued civil investigative demands, essentially subpoenas, to several companies that compete with Microsoft in business software and cloud computing, according to the report. 

The requests ask for detailed information on licensing practices, software bundling, and other operational policies, and at least half a dozen firms have received them. The FTC’s demands seek evidence that Microsoft may be restricting customers from using Windows, Office, and other software on rival cloud platforms, said the report. 

Microsoft stock inched 0.3% higher on Friday afternoon. On Stocktwits, retail sentiment around the stock shifted to ‘neutral’ from ‘bullish’ territory the previous day amid ‘normal’ message volume levels. 

Past Adjustments And International Scrutiny

Microsoft has already made some adjustments in response to earlier complaints, particularly in Europe, easing licensing rules to allow smaller cloud providers better access to its products. 

In the U.K., the company faces allegations of overcharging tens of thousands of British businesses that use Windows Server on rival cloud platforms like Amazon Web Services and Google Cloud.

In its recent second-quarter (Q2) fiscal 2026 earnings, Microsoft reported a marginal decline in growth of its cloud-computing unit, Azure, which clocked 38% sales growth, compared to 39% in the same period last year. The company also said that it expects its Azure revenue growth in the third quarter to be between 37% and 38% in constant currency.

MSFT stock has declined by over 1% in the last 12 months. 

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