The Federal Trade Commission is investigating Microsoft for potentially anticompetitive behavior in its cloud and AI businesses, according to new details reported by The Verge in June 2026. The probe, which began under the Biden administration in 2024 and has continued under President Donald Trump, could mark the end of a relatively quiet period for Microsoft as its Big Tech peers have faced sweeping antitrust lawsuits.
The FTC sent civil investigative demands — similar to subpoenas — to at least half a dozen companies that compete with Microsoft. The agency is focused on whether Microsoft has used unfair methods of competition in its cloud, software products, and related services in violation of the FTC Act. Questions in the documents center on Microsoft’s Azure cloud services, licensing arrangements, product bundling, pricing, and barriers to market entry, as well as competition in AI products.
Key complaints driving the inquiry include Microsoft’s 2019 changes to licensing terms, which customers have alleged made it significantly more expensive to run Windows software on infrastructure outside of Azure. In 2023, Google accused Microsoft of using dominance in other areas to give its own cloud products an advantage and lock in consumers. Microsoft disputes this, with spokesperson Alex Haurek stating the company is “cooperating fully with the FTC” and that its “practices promote competition.”
The investigation is not limited to the US. The European Commission, UK Competition and Markets Authority, and Japan Fair Trade Commission have also probed Microsoft’s cloud services within the past year.
There is no guarantee the investigation will result in a legal complaint. The FTC’s two Republican commissioners would need to vote to file a lawsuit, and they could choose to close the inquiry without action. Former FTC Chair William Kovacic noted that for a $3 trillion company, becoming an antitrust target is “almost inevitable.”
Should a case proceed, it could affect the broader AI industry at a moment when a handful of companies are competing for market share. Even without a breakup, antitrust suits can require years of litigation and subject internal business operations to close scrutiny.
Source: The Verge