Microsoft faces FTC investigation for reeling in federal contracts with freebies

The U.S. Federal Trade Commission (FTC) has launched an investigation Microsoftinvestigating potential antitrust violations in the company’s business practices. This action follows a report Puplika The filing details how Microsoft used its market dominance to gain an unfair advantage in government contracts. (via Bloomberg)

The investigation focuses on Microsoft’s strategy of bundling popular software, such as office and network security and cloud computing services. this Puplika According to reports, Microsoft is temporarily offering these bundled services to government agencies for free after a series of high-profile cyberattacks. However, after the free trial period ends, government agencies often find themselves tied to these services and become dependent on Microsoft’s products.

Critics point out that Microsoft’s strategy not only crowds out other cloud and security vendors, but also pushes governments to work closely with Microsoft’s Azure platform, even if Microsoft itself bears some “responsibility” for some high-profile cyberattacks.

In the 2020 SolarWinds hack linked to Russian attackers, a flaw in Microsoft products was exploited. other Puplica The report found that a Microsoft engineer discovered the weakness in advance, but it was rejected, in part to avoid making the login process too cumbersome (and potentially losing out to competitors).

Microsoft defended its actions, saying the bundled products were designed to meet the urgent cybersecurity needs of government agencies. However, the FTC’s investigation will carefully examine whether these actions constitute anti-competitive behavior and whether they may use the company’s market dominance to unfairly exclude competitors and limit consumer choice.

Sen. Ron Wyden, D-Ore., in Puplica The report also believes that Microsoft’s size and influence prevent it from taking more decisive action. He likened the company to an entity “too big to fail” and suggested regulators may need to take a tougher stance on the market dominance of big tech companies.

The FTC investigation is now in full swing, with the agency issuing a “civil investigative request” to Microsoft, similar to a subpoena forcing the company to provide documents and other information. While details of the investigation remain confidential, a Microsoft spokesperson said the FTC’s request is “broad, sweeping, and requires things that are beyond the realm of possibility or even logic.”