The Federal Trade Commission has launched a broad antitrust investigation into Microsoft’s business practices, focusing on how the company bundles its Office products with cybersecurity and cloud computing services.
The probe follows ProPublica reporting that revealed Microsoft offered free temporary upgrades of federal agencies’ software licenses to include advanced cybersecurity features, leading to long-term contracts once the trial period ended. The strategy helped Microsoft expand its government business while displacing competitors in both cybersecurity and cloud computing markets.
The investigation includes scrutiny of Microsoft’s identity management product Entra ID, formerly Azure Active Directory. The FTC has issued a civil investigative demand compelling the company to turn over information. The probe represents one of FTC Chair Lina Khan’s final moves before leadership changes under the Biden administration. Microsoft confirmed receiving the demand but called it “broad, wide ranging, and requests things that are out of the realm of possibility to even be logical.”
