The United States (US) Federal Trade Commission (FTC) has accelerated its investigation into Microsoft Corporation, issuing civil investigative demands to at least six competing companies as part of a probe into whether the technology giant illegally monopolizes the enterprise computing market through its cloud software and artificial intelligence (AI) offerings.
The agency sent the requests to companies that compete with Microsoft in business software and cloud computing markets in recent weeks, according to people familiar with the matter who spoke to Bloomberg News on Thursday. The demands seek information about Microsoft’s licensing rules, cloud interoperability limitations and product bundling practices.
Regulators are examining whether Microsoft’s practices make it difficult or more expensive for customers to use Windows, Office and other products on rival cloud platforms including Amazon Web Services (AWS) and Google Cloud. The investigation also seeks information about how Microsoft bundles AI, security and identity tools into products like Windows and Office.
The civil investigative demands, which function similarly to subpoenas, compel companies to provide documents and answer specific questions about their business dealings with Microsoft. Bloomberg reported that the requests include an array of questions focused on Microsoft’s licensing and other business practices.
According to the report, the investigation is examining licensing restrictions Microsoft first introduced in 2019, which have also been scrutinized by regulators in the United Kingdom (UK). Many of the questions in the FTC demand appear to echo work previously conducted by UK authorities.
The probe was launched in November 2024 under former FTC Chair Lina Khan during the final phase of the Biden administration. The investigation has continued under current FTC Chairman Andrew Ferguson, who was appointed by President Donald Trump in January 2025.
In late 2024, the FTC sent Microsoft a civil investigative demand requesting extensive data about its AI operations dating back to 2016, including model training costs, data center capacity challenges and product licensing. Approximately one third of the questions related specifically to AI, with concerns about whether Microsoft’s investment in OpenAI led the company to discontinue its own competing AI projects.
Microsoft invested $13 billion in OpenAI, the company behind ChatGPT. In 2025, the FTC raised antitrust concerns over the investment, warning the partnership could provide Microsoft with an unfair advantage in the AI market.
In November 2023, Microsoft assumed a non voting observer seat on OpenAI’s board of directors following a period of turmoil during which the board fired and then rehired Chief Executive Officer (CEO) Sam Altman within days. The company withdrew from the board position in 2024.
Competitors have criticized Microsoft’s practices, saying they keep customers locked into its Azure cloud service. Google filed a complaint with the European Commission in September 2024, saying Microsoft was exploiting its dominant Windows Server operating system to prevent competition.
Microsoft has made some policy changes following complaints about its licensing practices, particularly to support smaller European cloud providers using its products. The company struck an agreement in 2025 with a group representing European cloud providers to address concerns.
Microsoft has stated that some interoperability issues stem from underlying technical differences between companies. Security concerns following a series of cyberattacks have also influenced the company’s product strategy, according to previous statements.
No final decisions have been made, and FTC investigations do not always result in enforcement actions, Bloomberg noted. Microsoft and the FTC declined to comment on the ongoing investigation.
The investigation echoes a landmark US Department of Justice case in the late 1990s that examined how Microsoft bundled Internet Explorer into Windows in an effort to handicap rival Netscape and illegally extend its Windows monopoly.
