The US Federal Trade Commission has opened a broad antitrust investigation into Microsoft, including of its software licensing and cloud computing businesses, a source familiar with the matter said on Wednesday.
The probe was approved by FTC Chair Lina Khan ahead of her likely departure in January. The election of Donald Trump as US president, and the expectation he will appoint a fellow Republican with a softer approach toward business, leaves the outcome of the investigation up in the air.
The FTC is examining allegations the software giant is potentially abusing its market power in productivity software by imposing punitive licensing terms to prevent customers from moving their data from its Azure cloud service to other competitive platforms, sources confirmed earlier this month.
The FTC is also looking at practices related to cybersecurity and artificial intelligence products, the source said on Wednesday.
Microsoft declined to comment on Wednesday.
Competitors have criticized Microsoft’s practices they say keep customers locked into its cloud offering, Azure. The FTC fielded such complaints last year as it examined the cloud computing market.
NetChoice, a lobbying group that represents online companies including Amazon and Google, which compete with Microsoft in cloud computing, criticized Microsoft’s licensing policies, and its integration of AI tools into its Office and Outlook.
“Given that Microsoft is the world’s largest software company, dominating in productivity and operating systems software, the scale and consequences of its licensing decisions are extraordinary,” the group said.
Google in September complained to the European Commission about Microsoft’s practices, saying it made customers pay a 400 percent mark-up to keep running Windows Server on rival cloud computing operators, and gave them later and more limited security updates.
The FTC has demanded a broad range of detailed information from Microsoft, Bloomberg reported earlier on Wednesday.
The agency had already claimed jurisdiction over probes into Microsoft and OpenAI over competition in artificial intelligence, and started looking into Microsoft’s $650 million deal with AI startup Inflection AI.
Microsoft has been somewhat of an exception to US antitrust regulators’ recent campaign against allegedly anticompetitive practices at Big Tech companies.
Facebook owner Meta Platforms, Apple, and Amazon.com Inc. have all been accused by the US of unlawfully maintaining monopolies.
Alphabet’s Google is facing two lawsuits, including one where a judge found it unlawfully thwarted competition among online search engines.
Microsoft CEO Satya Nadella testified at Google’s trial, saying the search giant was using exclusive deals with publishers to lock up content used to train artificial intelligence.
It is unclear whether Trump will ease up on Big Tech, whose first administration launched several Big Tech probes. JD Vance, the incoming vice president, has expressed concern about the power the companies wield over public discourse.
Still, Microsoft has benefited from Trump policies in the past.
In 2019, the Pentagon awarded it a $10 billion cloud computing contract that Amazon had widely been expected to win. Amazon later alleged that Trump exerted improper pressure on military officials to steer the contract away from its Amazon Web Services unit.

BEIRUT: Two journalists were injured by Israeli fire on Wednesday, state media said, while reporting from a border town where Israeli troops and Hezbollah fought fierce battles before a ceasefire took effect.
The truce came into force on Wednesday morning after more than two months of full-scale war, which itself followed nearly a year of cross-border exchanges of fire initiated by Hezbollah in support of ally Hamas over the Gaza war.
Both Israel and Lebanon’s army have warned people against returning to southern areas heavily hit by war, with Israeli troops still present in some border towns and villages.
“Israeli enemy forces in the town of Khiam opened fire on a group of journalists while they were covering the return of the residents and the Israeli withdrawal from the town, wounding two,” the National News Agency said.
Video journalist Abdelkader Bay told AFP he was reporting in Khiam with two other visual journalists when shots were fired and he was injured along with his colleague.
“We saw people checking on their homes and, at the same time, we were hearing the sounds of tanks withdrawing,” Bay said, adding the other wounded journalist was hospitalized.
“While we were filming, we realized there were Israeli soldiers in a building and suddenly they shot at us,” he said.
“It was clear that we were journalists,” he added.
Photographer Ali Hachicho was with Bay in Khiam when the incident happened but was not injured. They both said they saw a drone above the town before shots were fired.
“We saw military fatigues on the ground,” Hachicho told AFP, then he spotted Israeli soldiers nearby.
“When I put the camera to my eye to film them, I started hearing the sound of bullets between our feet,” he said.
Later on Wednesday, the Israel army set limits on nighttime movement in south Lebanon.