U.S. FTC launches new probe into Microsoft's cloud and AI practices

The U.S. Federal Trade Commission (FTC) is investigating Microsoft again, this time over its Azure cloud business and AI products. The agency wants to know if Microsoft uses unfair deals to lock customers into its cloud services and if it bundles products like Microsoft 365 to hurt competitors.

In 2019, Microsoft changed its rules to make it more expensive for customers to run Windows on non-Azure cloud services. Google has also complained that Microsoft uses its market power to give its own cloud an unfair advantage.

The FTC is asking about Microsoft's free security upgrades for U.S. government agencies, which required them to use Azure. It's also looking at how Microsoft sells Microsoft 365 as a package.

A former FTC chair says Microsoft is a $3 trillion company, so it's normal to face monopoly complaints. But Microsoft has a good reputation for following rules after its earlier antitrust case.

If the FTC sues, it could slow down Microsoft's growth and affect the whole AI industry. Even if Microsoft wins, the case could take years.