Microsoft facing major FTC probe over locking in users to Azure, productivity software
US FTC reportedly set to investigate Microsoft over cloud lock-in
· TechRadarNews By Craig Hale published 15 November 2024
- Microsoft accused of anticompetitive business practices in cloud market
- The FTC reportedly set to launch investigation into Azure business
- Regulatory scrutiny is also affecting Amazon, Apple, Google
Microsoft could be the subject of yet another investigation into anticompetitive business practices.
A report from the Financial Times claims the US Federal Trade Commission (FTC) is reportedly preparing to investigate Microsoft over its Azure cloud computing business, which is accused of using restrictive licensing agreements to maintain its dominant position in the market.
The company has also been accused of tweaking prices to make it expensive for customers to leave in its effort to maintain high numbers.
Microsoft facing anticompetitive investigation
Raised subscription fees for customers seeking to leave, along with pricey exit and termination fees, could have been put in place to make customers think twice about the financial implications of changing providers.
Another anticompetitive practice Microsoft could have engaged in is making native systems, like Office 365, incompatible with other companies’ alternatives, therefore making it technically difficult to migrate.
The FTC’s probe follows a recent decision to investigate the business practices of major cloud providers, and it’s not the first time that Microsoft has been under the microscope. Just in the last year or two it has faced similar allegations over locking customers into its products within the European Union.
Google also has a role to play in the increased scrutiny over Microsoft – last summer, the company submitted a letter to the FTC accusing it of exploiting software like Windows Server and Office to push its Azure dominance.
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