Microsoft facing major FTC probe over locking in users to Azure, productivity software

A building at the Microsoft Headquarters campus in Redmond, Washington (2014).

(Image credit: Stephen Brashear/Getty Images)

Microsoft accused of anticompetitive business practices in cloud market
The FTC reportedly set to launch investigation into Azure business
Regulatory scrutiny is also affecting Amazon, Apple, Google

Microsoft could be the subject of yet another investigation into anticompetitive business practices.

A report from the Financial Times claims the US Federal Trade Commission (FTC) is reportedly preparing to investigate Microsoft over its Azure cloud computing business, which is accused of using restrictive licensing agreements to maintain its dominant position in the market.

The company has also been accused of tweaking prices to make it expensive for customers to leave in its effort to maintain high numbers.

Microsoft facing anticompetitive investigation

Raised subscription fees for customers seeking to leave, along with pricey exit and termination fees, could have been put in place to make customers think twice about the financial implications of changing providers.

Another anticompetitive practice Microsoft could have engaged in is making native systems, like Office 365, incompatible with other companies’ alternatives, therefore making it technically difficult to migrate.

The FTC’s probe follows a recent decision to investigate the business practices of major cloud providers, and it’s not the first time that Microsoft has been under the microscope. Just in the last year or two it has faced similar allegations over locking customers into its products within the European Union.

Google also has a role to play in the increased scrutiny over Microsoft – last summer, the company submitted a letter to the FTC accusing it of exploiting software like Windows Server and Office to push its Azure dominance.

However, Microsoft isn’t the only company that has faced such allegations. Many of its biggest rivals, including Amazon, Google, and just this week, Apple, have all been slated for anticompetitive business practices in one form or another – mostly relating to cloud subscriptions.

TechRadar Pro has asked Microsoft to comment on the allegations, but we did not receive an immediate response.

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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!