Two months after Google filed an antitrust complaint in Brussels against Microsoft, accusing the company of unfair cloud-computing practices, the U.S. Federal Trade Commission plans to investigate
Microsoft's cloud business and look into any anti-competitive behavior.
The FTC will examine allegations that Microsoft abuses its market power in productivity software by imposing punitive
licensing terms to prevent customers from moving data from its Azure cloud service to competitors’ platforms.
Google used the European Union's and U.S. Department of Justice's reasons
for filing antitrust lawsuits against the company, Google wrote in a blog post. It wrote that Microsoft leverages its Windows software to lock customers into its Azure cloud services, preventing
them from easily switching to alternatives.
Tactics being examined in the U.S. include the way Microsoft increases subscription fees for companies that want to leave. Reports suggest Microsoft
charges steep exit fees and allegedly make its Office 365 products incompatible with rival clouds.
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The allegations may have come from Google. Two of its executives alleged Microsoft is the only cloud provider to use these tactics, which have
significantly harmed European companies and governments.
"While Microsoft’s licensing practices apply to many enterprise products, Windows Server is central to the
company’s strategy of locking customers into Azure," Google's post explained. "Windows Server is a must-have workhorse in many IT environments, serving as the backbone for applications, files,
and services. And it has already added billions of dollars to Microsoft’s revenues."
Based on Google's post, it is not surprising that the query -- initially reported by the Financial Times
-- will take shape.
While the investigation reflects the FTC's push led by FTC Chair Lina Khan to address technology's influence in cloud services and monopolistic practices, with
the Trump administration taking the helm in January the inquiry could be done before it starts.
With the increased use of AI, cloud computing has rapidly
expanded across the advertising industry. Overall spend in cloud services reached $84 billion in Q3 2024, Synergy Research Group estimates.
Microsoft controls through Azure about 20% of the
global cloud market, second only to Amazon Web Services that has control of 31%. Google Cloud owns 12%.