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The FTC’s Microsoft Antitrust Probe Reportedly Focuses on Software Bundling
A recent report by ProPublica suggests that the Federal Trade Commission (FTC) is investigating Microsoft in a manner reminiscent of 1998. This development comes as no surprise, given the company’s history with bundling software products and its potential anticompetitive implications.
According to sources, the FTC’s investigation centers around Microsoft’s practice of bundling ubiquitous Office products with cybersecurity and cloud computing services. The alleged issue lies in the company’s decision to offer a limited-time upgrade deal for government bundles, effectively utilizing a government cybersecurity crisis as an opportunity to increase license sales. This strategy is said to have had a negative impact on competitors.
The FTC has reportedly issued a civil investigative demand (essentially a subpoena) to Microsoft, requiring the company to provide information related to the case. In response, Microsoft officials downplayed the significance of the request, stating that the demand is “broad, wide-ranging, and requests things that are out of the realm of possibility to even be logical.”
It’s worth noting that this investigation is not an isolated incident. Microsoft has faced similar scrutiny in the past, particularly during the 1998 antitrust lawsuit against the company. In those early days of the internet, the FTC accused Microsoft of engaging in anticompetitive practices by including Internet Explorer with Windows, a move that hindered rivals like Netscape.
The current investigation is also linked to a separate ProPublica report from November, which revealed that Microsoft appeared to exploit cyberattacks to sell more licenses to the US government. Following a meeting with President Biden in 2021, the company offered to upgrade existing government bundles, including Windows and its Office suite, to a more expensive version featuring advanced cybersecurity products. This offer led many government agencies, including all military services of the Defense Department, to begin paying for upgraded bundles after the trial concluded.
Microsoft’s actions have been painted as an attempt to exploit a cybersecurity crisis to expand sales and increase revenue. The company’s decision to withhold information about a security vulnerability in its identity service was also found to be a significant factor in this investigation.
It seems that Microsoft is once again facing scrutiny for its software bundling practices, which may have violated regulations on contracting and competition.
Source: www.engadget.com
