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The Federal Trade Commission (FTC) is allegedly investigating Microsoft in a manner reminiscent of 1998’s landmark antitrust lawsuit against the company. According to ProPublica, the inquiry centers around allegations of software bundling, which has sparked concerns about anti-competitive practices.
It appears that the FTC’s investigation is scrutinizing Microsoft’s business tactics, particularly its decision to bundle Office products with cybersecurity and cloud computing services. This practice may have had a profound impact on competitors in the industry, making it difficult for them to remain competitive.
The allegations of unfair trade practices come as no surprise, given Microsoft’s history of bundling its popular software with cloud services. In fact, Bloomberg and Financial Times previously reported that the FTC was probing the company over these claims.
In an effort to further investigate this matter, FTC attorneys have reportedly interviewed and scheduled meetings with Microsoft’s competitors. The company has confirmed that it received a civil investigative demand from the FTC, compelling it to provide information related to the case.
Microsoft has responded to the allegations by stating that the FTC’s request is “broad, wide-ranging, and requests things that are out of the realm of possibility to even be logical.” It remains unclear what specific concerns or issues Microsoft hopes to address through this statement.
It’s worth noting that these accusations follow a separate ProPublica report in November highlighting how Microsoft allegedly exploited cyberattacks to sell more licenses to the US government. The company’s business practices were said to have been influenced by a meeting between President Biden and Big Tech leaders, following the SolarWinds attack.
In this context, experts consulted by ProPublica suggest that Microsoft’s sales tactic may have violated regulations on contracting and competition. Even Microsoft’s own attorneys reportedly expressed concerns about the potential anti-competitive implications of this deal.
As tensions escalate, it becomes increasingly clear that the FTC’s investigation will not be a trivial matter. It is essential to monitor developments closely as the situation unfolds.
Source: www.engadget.com
