The US Federal Trade Commission has stepped up an antitrust probe into Microsoft, examining whether the company uses its dominance in enterprise software, cloud, and AI to curb competition.

The FTC has issued civil investigative demands to multiple rivals, seeking details on licensing, software bundling, and other policies to determine if Microsoft restricts customers from using Windows, Office, or other software on competing cloud platforms.

Investigators are seeking information on Microsoft’s AI, security, and identity software bundling within its offerings.

Possible outcomes range from negotiated settlements with licensing changes to formal antitrust complaints that could lead to lengthy litigation and potential structural remedies.

Microsoft’s Azure cloud grew 38% in the latest quarter, a slight deceleration from the year-ago period, with management guiding 37%–38% growth in the next quarter in constant currency.

The cloud market value exceeded $270 billion in 2024, with Azure capturing roughly a quarter of the market, underscoring the high stakes of any regulatory action.

Microsoft defends its licensing terms as business decisions, noting customer alternatives and ongoing competition from AWS, Google Cloud, and startups.

Analysts say the outcome could reshape cloud services and AI tool marketing in the US, potentially prompting structural or behavioral changes across the sector.

The OpenAI–Microsoft relationship is under review for commercial terms and control questions, given deep financial and operational ties despite no formal board seat.

EU actions include a €20 million settlement with CISPE members and licensing adjustments to allow European providers parity access to Microsoft software, though concerns persist about US customers and perceived product tying, especially with Microsoft 365.

Rivals privately flag restrictive terms or incentives that favor Microsoft’s ecosystem, while publicly they remain cautious about speaking to regulators.

No specific dates or findings are provided yet; the probe has accelerated but more details are needed for a fuller timeline.