Regulatory authorities across the world are accelerating Microsoft antitrust investigations, focusing on the company’s cloud computing, artificial intelligence, and software licensing practices. Government agencies in the United States, Japan, Brazil, and Switzerland have recently launched or intensified probes to determine if the technology giant is illegally monopolizing crucial enterprise computing markets.
The core of these global inquiries centers on whether Microsoft is exploiting its dominant market position to create artificial barriers for competitors. Regulators are examining allegations that the company structures its enterprise software licenses to disadvantage rival cloud providers, force significant price increases, and tightly bundle new artificial intelligence tools with its legacy software products.
US FTC Escalates Licensing and AI Probe
In the United States, the Federal Trade Commission is doubling down on a wide-ranging investigation originally launched in November 2024. The agency is looking into whether Microsoft is illegally monopolizing enterprise computing markets through its cloud software and artificial intelligence services, including Copilot.
To gather evidence, the FTC has issued civil investigative demands, which act as civil subpoenas, to at least half a dozen companies that compete with Microsoft. The regulator is requesting detailed information regarding Microsoft’s licensing structures and business practices. The agency is also compelling Microsoft to turn over roughly a decade of operational data spanning from 2016 to 2025.
The federal probe specifically seeks to determine if Microsoft makes it difficult for customers to use popular products like Windows and Office on competing cloud services. Additionally, regulators are investigating how the company bundles artificial intelligence, cybersecurity, and identity software into its dominant productivity applications. Authorities are examining whether this bundling impedes customers from switching to rival offerings, which could violate antitrust laws by giving Microsoft an unfair advantage in the cloud and cybersecurity sectors.
Japan Conducts Office Raids Over Cloud Practices
The regulatory scrutiny extends into Asia, where the Japan Fair Trade Commission has opened a formal investigation into Microsoft, Microsoft Japan, and Microsoft Ireland Operations Limited. On Wednesday, Japanese regulators conducted an on-site examination, raiding Microsoft’s offices in Tokyo over suspected violations of the nation’s Antimonopoly Act.
Japanese authorities are scrutinizing how Microsoft’s enterprise software licensing conditions interact with the broader cloud infrastructure market. The commission suspects that Microsoft structures its licensing terms so that businesses face restrictions or higher costs when running enterprise software on cloud platforms that directly compete with Microsoft Azure.
The Japanese investigation highlights widely used enterprise products, including Windows Server, Windows Client, Microsoft SQL Server, Microsoft 365, and Visual Studio. Regulators are examining practices that either limit the use of these software products alongside competing cloud services or artificially inflate the cost for companies that choose not to utilize Azure. A Microsoft spokesperson stated that the company is fully cooperating with the commission’s requests.
Brazil Examines Local Cloud Market Impact
In South America, Brazil’s competition authority, the Council for Economic Defense, has opened an administrative inquiry into Microsoft’s local operations. The Brazilian regulator is investigating whether the company’s global software licensing and cloud policies are distorting competition for local enterprise and public sector customers.
The regulatory action arrives as Microsoft rapidly expands its local footprint. The company currently operates two cloud regions in Brazil, located in Rio de Janeiro and São Paulo. In September 2024, Microsoft announced a $2.7 billion investment plan to further expand its cloud and artificial intelligence infrastructure within the country.
The Brazilian authority is testing whether the same licensing tactics previously flagged by United Kingdom regulators are replicating anti-competitive impacts in Latin America. The technical office recommended the formal inquiry, noting indications that Microsoft may be leveraging its dominance to create barriers for competitors. Regulators gave Microsoft a January 12 deadline to respond to a detailed questionnaire regarding its current licensing practices.
Switzerland Probes Significant Price Hikes
European scrutiny also continues to mount. The Secretariat of the Swiss Competition Commission has launched a preliminary investigation into Microsoft’s licensing fees across Switzerland. The agency initiated the probe after receiving complaints from rivals regarding significant price increases for the Microsoft 365 software suite.
Swiss regulators warned that the recent fee increases might constitute an unlawful restriction of competition under the country’s Cartel Act. The price hikes primarily affect private businesses, public companies, government agencies, and other government-related bodies that rely heavily on the software suite.
The preliminary inquiry aims to determine whether these pricing strategies breach competition laws. Depending on the findings, the commission may involve the national Price Supervision Authority, and the preliminary review could escalate into a formal investigation. Microsoft confirmed its commitment to complying with Swiss competition law and stated it will cooperate with the preliminary investigation.
