In a report seen by the Financial Times published in November, antitrust lawyers said the FTC is preparing to investigate Microsoft’s cloud computing for anti-competitive issues. This step was taken as antitrust investigations into the claims that the company subjects consumers to mandatory decoding for using its Azure cloud service rather than converting data to rival services.
The findings are more likely to stem from some major areas of interest in the investigation, as discussed below. One major concern is that Microsoft is said to have had preposterous licensing conditions reportedly which make it almost impossible for clients to switch to other cloud service providers. Such tactics are reported to include huge raises in subscription costs for those willing to opt out of Azure together with the application of high exit penalties.
One aspect of the probe may look into allegations of efforts Microsoft has made to ensure its Office 365 software can only work with competitors’ cloud services. On the social side, if these allegations are true, then the customers would find it difficult to move their operations to other platforms, thus depriving the cloud computing market competition.
The FTC’s move follows other actions against big tech and Microsoft’s cloud business in particular amid rising antitrust concerns. Since cloud computing plays an essential role in existing business processes, efforts to promote fair competition and prevent abuse of market dominance have become relevant.
A competitor in the field of cloud computing and an owner of the Azure facility, the Microsoft company has also received the same accusations. Microsoft has been accused and questioned for years on its hegemony of the market in productivity software, especially popular Office suite.
The subject of the investigation by the FTC could have consequences not only for Microsoft but for the whole sphere of cloud computing. This means that if these allegations are proven to be true, then Microsoft’s cloud business and its relations with customers may substantially change. This could also allow competing cloud providers that are currently locked down by single-tenant agreements to enter more readily and allow customers to have more possibilities for changing between cloud services.
Nevertheless, it is still necessary to state that, up to the present day, the FTC has not publicly endorsed this information as a fact. When contacted for press response, the regulators’ body refused to avail any response. Likewise, згідно із заявами, Microsoft also has not reacted to letters for the comment, concerning the information on the allegedly carried out investigation.
The result of this hypothetical probe might establish precedents beneficial for the whole cloud computing market. Since many companies start choosing cloud services as essential tools for their operations, everyone involved must protect fair competition and innovation. If it goes forward, it will undoubtedly attract attention from industry participants, regulators, and customers.
It will be interesting to behold how Microsoft responds to such accusations and what role any possible investigation may play in the company’s cloud service plan. Of course, Mazzone states that the tech giant has been through the regulator’s radar before and it has for one, amplified some of the changes in its practices.
Over the next few months, people in the industry will be waiting for official news from the FTC or any statements from Microsoft regarding this supposed investigation. The possible probe reveals the now, and probably forever, experiment in how to encourage innovation while preventing unfair competition in one of the most dynamic technologies.
