Microsoft slides after FTC launches antitrust investigation: report

Microsoft (NASDAQ:MSFT) is reportedly under a wide-ranging antitrust investigation by the U.S. Federal Trade Commission, according to Bloomberg.

The investigation is allegedly looking into multiple facets of Microsoft’s business practices, including cloud computing, software licensing, cybersecurity and artificial intelligence, according to the report, which cited unnamed sources familiar with the matter.

Microsoft closed the trading day down 1.3%.

Apparently, the FTC sent Microsoft a request, which is hundreds of pages long, demanding the tech giant to release detailed information on company policy, the report said. FTC Chair Lina Khan approved the request. FTC lawyers are also supposed to meet with Microsoft competitors next week to gather more information into the antitrust allegations.

Microsoft told Seeking Alpha the company has no comment on the matter.

The probe is supposedly focused on how Microsoft bundles its office productivity and security software with its cloud offerings, the report said. Competitors complained the bundling practice of software with cloud services makes it difficult for other cybersecurity firms to compete.

Earlier this month, it was reported the FTC was looking into whether Microsoft has abused its power in the productivity software market by making it harder — or preventing altogether — customers from moving their data on Microsoft’s Azure cloud to competitors.

Issues included potentially increasing subscription fees for customers that leave, charging exit fees and making Office 365 software incompatible with other clouds.

Microsoft Azure, Google Cloud (GOOG)(GOOGL) and Amazon Web Services (AMZN) are the three largest cloud service providers by market share. According to the latest data by Canalys, AWS holds 33% of the global market share, compared to Azure at 20% and Google Cloud at 10%.