Microsoft in the Hot Seat: New FTC Antitrust Investigation and Leaks

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Microsoft has been struck with another wave of scrutiny, this time involving a reported antitrust investigation launched by the Federal Trade Commission (FTC). But here’s the kicker—it’s not just the investigation that has the tech giant in a mood. It’s how Microsoft found out about the probe: through a news story published by Bloomberg. And while being the centerpiece of yet another antitrust inquiry might be a badge Microsoft reluctantly gets used to, this time the controversy is less about its practices and more about who might be spilling the beans from inside the FTC.
Before we dive deeper, buckle up Windows enthusiasts, because this story combines the nerve of corporate outrage, the intrigue of behind-the-scenes leaks, and potentially widespread implications for the tech sector.

What’s the Buzz Around This Antitrust Investigation?​

As per the claims circulating after the Bloomberg report, the FTC is allegedly investigating Microsoft’s practices in three key realms:
  1. Cloud Technology—competing services like Azure are already a battleground of worldwide scrutiny, with allegations of pricing strategies designed to undercut competitors.
  2. Artificial Intelligence (AI)—Microsoft’s tight embrace with OpenAI’s technologies, which powers AI marvels like ChatGPT, is raising competition-related eyebrows.
  3. Cybersecurity Practices—the watchdog might be eyeing the tech firm’s increasing role in safeguarding governmental infrastructure, especially following breach allegations involving state-sponsored attacks by countries like China and Russia.
What sets this situation apart from your typical investigation? Microsoft is clueless about specific allegations, as the FTC hasn’t issued any formal notification—a procedural step, such as a Civil Investigative Demand (CID), is expected but hasn't materialized so far. If this sounds chaotic, it's because it is. A week after the investigative claims hit the headlines, the Redmond-based company says it still hasn't obtained a copy of any supposed documentation regarding the inquiry.
This isn’t the first time Microsoft has been cornered with legal and regulatory pressures. The company is already dealing with allegations of overpricing its products for non-Azure users in the UK, not to mention growing whispers in the European Union about its cozy relationship with OpenAI. Stack on cybersecurity complaints for a juicy layer of complexity.
But wait—Microsoft’s reaction this time isn’t just about what’s being investigated. It’s about how the investigation was made public.

Enter the Leak Battle: Microsoft Strikes Back at the FTC​

Framing the FTC’s alleged investigative leak as unethical, Microsoft’s corporate VP and deputy general counsel, Rima Alaily, fired off a letter demanding an inspection of the FTC’s conduct. This letter wasn’t a teaser; it was a full-on accusation, citing growing instances within the FTC of what Alaily describes as "selective, unauthorized disclosures." She claims that these leaks violate the FTC’s internal ethics and rules of practice, arguing that Chair Lina Khan’s leadership has seen a climb in such breaches.
So, what exactly is Microsoft after? The letter doesn’t focus on quashing the investigation outright but instead urges Andrew Katsaros, the FTC’s Inspector General, to audit how such confidential information could potentially seep into the media. Microsoft’s stance appears to challenge the foundational neutrality of the FTC while spotlighting its alleged management flaws during high-stakes investigations.

Why This Issue Could Be Bigger Than Microsoft​

In an era where government regulators are doubling down on Big Tech scrutiny—fueling antitrust cases left and right—this saga carries massive implications beyond just Microsoft.
For one, federal agencies like the FTC rely on controlled narratives to move their complex public-interest cases forward. If insiders are indeed leaking non-public details, it raises questions about whether such tactics undermine the integrity of investigations. Chair Lina Khan has become a polarizing figure for her aggressive stance on curbing monopolistic behavior in Big Tech. But sharp tactics in combating corporate behemoths can sometimes fuel backlash too. Could this mounting criticism of procedural ethics weaken her leadership grip at the FTC?
Additionally, political winds may shift unpredictably. With President-elect Donald Trump set to occupy the White House in early 2025, the FTC’s current strategies and leadership could face seismic policy realignment. A publicly accused agency of leaking unauthorized data might find itself at odds with a Trump-led administration keen on deregulating markets for larger corporations.

A Quick Dive Into the Key Areas of Investigation​

If the investigation materializes in formal filings, here’s what might be under the microscope:
  1. Cloud Services—Microsoft has faced competition issues with its Azure cloud service, notably raised by rivals alleging limiting behaviors. Specific pricing structures for platform competitors have caught attention, with claims suggesting Microsoft unfairly advantaged Azure-linked users.
  2. AI Partnerships—Microsoft’s close grip on OpenAI, including integrating ChatGPT into its enterprise tools like Microsoft Teams, is seen as an aggressive market move. By deeply incorporating OpenAI’s technologies, Microsoft could dominate AI-powered enterprise solutions, potentially boxing out similar innovators.
  3. Cybersecurity—Microsoft already has a tight lock on US governmental infrastructure, but incidents involving breaches via their platforms (often pinned on international adversaries like China) could lead to legitimate tests about safeguarding national assets.

What Happens Next?​

Without formal steps from the FTC, this antitrust puzzle is missing some key pieces. Still, Microsoft’s indirect challenge against the FTC to clean out the supposed leakers adds significant spice to what otherwise might have been a mundane corporate squabble. With Microsoft redirecting the spotlight onto the FTC’s practices, the court of public opinion may play a larger role than expected as this story unfolds.
If the FTC’s Inspector General takes up Microsoft’s request, further publicity around such investigations is almost guaranteed. Whether this will strengthen accountability or blur regulatory boundaries is anyone’s guess.
For now, though, antitrust cases targeting Big Tech, much like the software giant’s products, don’t appear to be going away anytime soon. Whether you’re cheering on the regulators or sticking with Team Microsoft, this showdown just got personal.

What are your thoughts, WindowsForum readers? Do you think Microsoft has a point about needing to investigate FTC leaks, or is this some next-level corporate deflection? Drop your comments below and let us know!

Source: The Register Microsoft learned about new antitrust investigation from the news