Microsoft accused of creating a monopoly on US government systems through free upgrades

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Did Microsoft lock in the US government?

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(Image credit: Mark Makela/Getty Images)
  • Microsoft gave the US government $150 million in cybersecurity tools
  • The deal included the pricey Microsoft 365 Government G5
  • Consultants accused of increasing dependency on Microsoft

As Microsoft looks to confront European antitrust regulator scrutiny, the company is also facing investigations over alleged business practices over the pond in the US.

It has been suggested Microsoft offered one of its most important customers, the US government, free services in order to keep it as a customer and stamp out competition.

A ProPublica report found the company pledged $150 million in cybersecurity services to the federal government during a 2021 White House summit led by President Joe Biden. Rumored to be internally known as the ‘White House Offer,’ Microsoft’s pledge would see federal agencies gain access to the Microsoft 365 Government G5 security suite, which includes security, compliance and collaboration features. G5 costs around 60% more than G3.

Microsoft accused of monopolizing US government contracts

Furthermore, Microsoft consultants working within the government’s agencies to assist with the implementation of the company’s tools reportedly created a dependency on its services, effectively making it more difficult for the US government to switch providers.

The White House Offer benefited Microsoft beyond the cybersecurity space, as well. By boosting adoption of its Azure cloud platform, Microsoft would be able to intensify its competition against Amazon Web Services, which accounts for the largest portion of the cloud pie.

Steve Faehl, Federal Security CTO for Microsoft, stated the company’s “sole goal during this period was to support an urgent request by the Administration to enhance the security posture of federal agencies who were continuously being targeted by sophisticated nation-state threat actors.”

A White House spokesperson sought to distance the government from Microsoft’s conduct: “This was a voluntary commitment made by Microsoft… and Microsoft alone was responsible for it.”

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Craig Hale
Craig Hale

With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!