The Federal Trade Commission (FTC) has initiated a comprehensive investigation into Microsoft's business practices, particularly focusing on its cloud computing operations and related offerings in artificial intelligence and cybersecurity. This investigation represents a substantial legal undertaking that will require the attention of the incoming administration led by President-elect Donald Trump.

A source familiar with the situation, who spoke to The Associated Press on the condition of anonymity, indicated that the FTC's investigation is part of a broader strategy that has characterised over three years of assertive antitrust enforcement under the leadership of FTC Chair Lina Khan. Khan was appointed by President Joe Biden, who had committed to a more rigorous examination of monopolistic practices prevalent in large technology firms.

This investigation marks a significant escalation in scrutiny for Microsoft, diving deeper into the company’s core operations than it has faced in nearly three decades, reminiscent of the high-profile antitrust battles it encountered during the 1990s. Last year, the FTC's initial efforts to challenge Microsoft's acquisition of video game giant Activision Blizzard, valued at $69 billion, were unsuccessful when a federal judge opted not to block the merger.

The future of this investigation hinges on the actions of Trump's anticipated FTC chairperson. Analysts have speculated that there may be a shift towards a more lenient regulatory stance regarding the tech industry under Trump's administration. However, incoming Vice President JD Vance has previously expressed support for Khan’s initiatives, suggesting that the momentum of rigorous scrutiny may continue.

In addition to Microsoft's situation, other significant antitrust matters are also in progress. The Department of Justice is examining Nvidia's operations, and there are ongoing considerations about the potential breakup of Google, particularly in relation to its Chrome web browser, following a federal ruling that deemed Google's market dominance illegal over the past ten years.

As the landscape of technology and regulation continues to evolve, the implications of these investigations, alongside the emerging trends in artificial intelligence and cloud computing, will be pivotal in shaping business practices in the sector.

Source: Noah Wire Services