Major investigation against Microsoft

Microsoft Pavilion at Dubai Expo - EPA Photo, Ali Haider

If Microsoft is proven to have abused its market power, new sanctions or regulations could be introduced that would change the rules of the game for the big tech companies, especially in fast-growing sectors like artificial intelligence

US authorities have launched a wide-ranging antitrust investigation against Microsoft, focusing on its practices in the field of artificial intelligence (AI) and cloud services. This investigation, led by the Federal Trade Commission, covers several aspects of the operation of this technology giant.

The main topic of the investigation is the potential use of Microsoft's dominant position in the cloud and security solutions markets by merging its services. The company has been accused of unfairly bundling its products such as Office and security applications with cloud services, which could create competitive imbalances. The researchers suspect that Microsoft is using these combinations to force customers to choose their solutions, regardless of whether they have better options on the market.

At the same time, the impact of Microsoft's strategy in the field of artificial intelligence is also examined. Microsoft, through large investments in companies like Open AI, has significantly strengthened its capabilities in this technology. Many experts believe this has put the company in a dominant position, raising concerns about possible control over this fast-growing industry.

Microsoft is also under investigation for its partnership with Open AI – the company that launched the Chatjipity chatbot. It is investigating whether Microsoft deliberately evaded antitrust controls by structuring its contracts without properly reporting them to authorities.

An example of that is the deal Microsoft reached with Inflection AI, a startup in which the company invested $650 million. Although Microsoft did not acquire the company, that deal allowed companies to use Inflection AI's intellectual capital, potentially increasing Microsoft's dominant status without the need for antitrust oversight.

The Microsoft investigation is part of a broader campaign by President Joe Biden's administration to step up regulation of big tech companies. Last year, some of the biggest tech giants like Google, Amazon and Meta were subjected to similar investigations. Washington officials are also looking at how tech companies are using their resources to squeeze out smaller competitors, affecting industries ranging from cloud computing to artificial intelligence.

Information from various sources indicates that the investigation into Microsoft could have far-reaching consequences, not only for the company itself, but also for the industry as a whole.

If Microsoft is proven to have abused its market power, new sanctions or regulations could be introduced that would change the rules of the game for the big tech companies, especially in fast-growing sectors like artificial intelligence.

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