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The Federal Trade Commission (FTC) is reportedly investigating Microsoft in a matter reminiscent of the 1998 antitrust lawsuit against the company. According to reports, the FTC’s probe centers around Microsoft’s software bundling practices.
It appears that the investigation has escalated, with FTC attorneys having recently interviewed and scheduled meetings with Microsoft’s competitors. The company has confirmed that it received a civil investigative demand from the FTC, requiring the turnover of relevant information related to the case.
In its response, Microsoft has characterized the FTC’s request as “broad,” “wide ranging,” and asking for information that is both “illogical” and “out of the realm of possibility.” No specific examples were provided by the company to support these claims.
It is alleged that Microsoft has been bundling its ubiquitous Office products with cybersecurity and cloud computing services. This practice, critics argue, gives the tech giant an unfair advantage over competitors and stifles innovation.
The investigation comes as no surprise given recent revelations about Microsoft’s business practices. In a separate report by ProPublica, it was claimed that the company exploited a series of cyberattacks to sell more licenses to the US government. The alleged scheme saw Microsoft offer to upgrade existing government bundles, including Windows and Office, to a more expensive version that included its advanced cybersecurity products.
It is further alleged that consultants were dispatched to install the upgrades and train employees on their use. Many government agencies, including all of the Defense Department’s military services, reportedly accepted the offer and then began paying for the more expensive bundles after the trial period ended.
The situation bears a striking resemblance to the 1998 antitrust lawsuit against Microsoft, which centered around similar allegations of bundling and unfair business practices.
Source: www.engadget.com
