Microsoft is set to go under the microscope of the nation’s top antitrust watchdog, the Federal Trade Commission, which is launching a sweeping investigation into the tech giant’s practices.
The FTC, in a letter sent to Microsoft, demanded that it hand over information to assist in the agency’s investigation, a source familiar with the matter told CNN.
The FTC and Microsoft declined to comment.
The probe was first reported by Bloomberg.
Microsoft’s business is wide-ranging. It has quickly become a leading player in the emerging artificial intelligence space, thanks to an investment in OpenAI and its own AI system, Copilot, which built on the company’s existing cloud computing, enterprise software, gaming and device businesses.
And the company has faced antitrust concerns before. European officials earlier this year considered a formal investigation of Microsoft’s OpenAI partnership, part of a wider effort to assess competition in the AI field, although the probe never materialized.
Microsoft also battled FTC resistance to its $69 billion acquisition of video game publisher Activision Blizzard, which closed in October 2023. The agency had argued the merger would give Microsoft a monopoly in video game publishing, which the company denied.
A new chapter for the FTC
The investigation comes just months before President-elect Donald Trump returns to the White House. Trump hasn’t yet announced whom he plans to nominate to lead the FTC, but he is all but certain to replace the agency’s current chair, Lina Khan.
The new administration could also toss out any current FTC investigations.
Trump’s reelection has raised questions about how his administration will handle ongoing antitrust cases against tech giants, including Apple and Amazon. Google also awaits a decision on whether a federal judge will accept the US government’s recommendation that it should be forced to sell off Chrome after its search business was ruled a monopoly.
The FTC has blocked dozens of mergers and acquisitions under the direction of Khan in conjunction with the Justice Department. But in addition to the Activision Blizzard acquisition, the agency has suffered several defeats in regulating big tech.
Two years ago, it abandoned a case seeking to block Meta from purchasing virtual reality start-up Within Unlimited. It also hasn’t successfully proved that Meta illegally cut competition by purchasing Instagram and WhatsApp, a case it launched four years ago.
This story has been updated with additional context and developments.
