Image: © photo for everything/Stock.adobe.com
According to reports, the organisation is examining accusations that Microsoft abuses its market dominance in the cloud sector.
The US Federal Trade Commission (FTC) is reportedly set to launch an investigation into anticompetitive practices in Microsoft’s cloud computing business.
First reported by the Financial Times yesterday (14 November), the tech giant is apparently facing accusations that it abuses its market power in productivity software by imposing punitive licensing agreements that stop customers from moving data off its platforms. It is accused of tactics including hiking subscription fees for customers who wanted to leave, making its platform incompatible with competitors and charging large exit fees.
At present, the specific details concerning what course the investigation will take are unknown.
Earlier this year, Google filed a complaint with the European Commission about Microsoft and its licensing practices. The search giant claimed Microsoft’s practices were “anticompetitive” and alleged that Microsoft leverages Windows Server dominance to drive customers to Azure.
Google further claimed that it exploits customers’ reliance on products like Windows Server by “imposing steep penalties on using on-premise software with Azure rivals”.
Last year, the FTC released a public appeal seeking feedback on major cloud providers’ business practices as part of FTC chair Lina Khan’s major pushback against monopolies since taking over office. The appeal saw the FTC receive a number of comments about restrictive software licensing, minimum spend contracts and high data transfer fees as areas of anticompetitive concern.
Earlier this week, a US judge ruled that Meta, the parent company of Facebook and Instagram, must face an antitrust lawsuit.
As part of this complaint, the FTC alleges that Meta’s dominant market share is protected by “barriers to entry” into the market, which the filing describes as “any factor that permits firms already in the market to earn returns above the competitive level while deterring outsiders from entering”.
The FTC alleges Meta has “wilfully” maintained that power through anticompetitive practices – specifically through purchasing Instagram in 2012 and WhatsApp in 2014.
Don’t miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic’s digest of need-to-know sci-tech news.
