The Federal Trade Commission (FTC) has initiated a comprehensive investigation into Microsoft’s business practices, focusing on potential antitrust violations. The probe centers on Microsoft’s bundling strategy, where it packages popular Office products with cybersecurity and cloud computing services. This practice came under scrutiny after a 2021 initiative where Microsoft offered free upgrades to its cybersecurity products to federal employees, which included the military services. Approximately 90% of the military services in the Defense Department accepted these upgrades, leading to a significant shift in market share away from competitors like Amazon Web Services. The bundling not only displaced existing cybersecurity vendors but also funneled government contracts towards Microsoft’s Azure cloud platform. The investigation involves interviews with Microsoft’s competitors and aims to determine if these practices unfairly limit competition in the tech industry.
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