The Federal Trade Commission (FTC) is preparing to investigate Microsoft Corp (NASDAQ:MSFT) for potential anti-competitive practices in its cloud computing business.
Allegations include imposing restrictive software licensing terms that deter customers from switching to rival cloud platforms and charging steep exit fees for those who leave its Azure service.
The inquiry is part of FTC chair Lina Khan’s focus on curbing monopolistic behaviour in Big Tech, which has also drawn scrutiny from international regulators.
The UK’s Competition and Markets Authority is examining claims that Microsoft and Amazon “lock in” customers through exclusivity discounts and high data transfer fees.
The FTC's decision follows feedback from industry participants highlighting concerns about competition, licensing restrictions, and customer costs. Microsoft disputes these claims and has accused Google of lobbying to undermine its cloud business.