The FTC is readying an investigation into Microsoft’s cloud-computing business: report

FTC chair Lina Khan.

The Federal Trade Commission is reportedly gearing up to launch an investigation into Microsoft’s cloud computing platform, Azure, based on allegations that the company is using anti-competitive tactics to maintain its dominance in the cloud market.

The FTC is examining claims that Microsoft has imposed punitive licensing agreements to block customers from moving their data off its platforms to competitors, the Financial Times reported, citing people with direct knowledge of the probe.

Microsoft and the FTC did not respond to B-17 request for comment.

The tactics it may investigate include hiking subscription fees for customers who want to leave or steep exit fees and making its platform incompatible with competitors, sources told the FT.

The probe would be part of a broader push led by FTC chair Lina Khan, who has been one of Big Tech’s biggest critics since she took the position in 2021. During her tenure — which may end with the start of Donald Trump’s second term as president — she’s been focused on calling for stronger anticompetitive regulations.

Last year, the FTC sought public feedback on cloud providers’ business practices. Most commenters expressed concerns about competition, highlighting restrictive software licensing, high data transfer fees, and minimum spend contracts.

Cloud computing, which is the delivery of on-demand computing services including storage, software, processing power, or other resources via the internet, was valued at close to $590 billion in 2023, according to a report from Fortune Business Insights.

Khan, who was appointed by Biden, has led antitrust investigations of major tech giants, including Google, Amazon, Meta, Apple, and OpenAI.

Kahn said on “60 Minutes” recently that major tech companies have gone on an acquisition spree over the last several years that ultimately harmed Americans.

“In the technology markets, we went through a couple of decades where we saw over 800 acquisitions by the five big players, not a single one of which was blocked, and some of those we realized ended up leading to significant harm,” she said in the September interview.

Khan’s stance earned her enemies on both sides of the aisle, some of whom have called for her ousting. Mark Cuban, a vocal supporter of Vice President Kamala Harris’ bid for the presidency, caught heat from Rep. Alexandria Ocasio-Cortez when he suggested Harris should replace Khan if she were elected president. Ocasio-Cortez promised a fight if Khan were replaced, saying in October that Khan “proves this admin fights for working people.”

Antitrust laws are enforced by both the FTC and the Department of Justice, which Trump has tapped Rep. Matt Gaetz to run.

Though he faces an uphill climb toward Senate approval, Gaetz has historically supported antitrust suits amid his accusations that big tech organizations censor conservative voices.