Microsoft accuses FTC of leaking news of its antitrust investigation - The Verge

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Microsoft accuses FTC of leaking news of its antitrust investigation

Recent allegations that the FTC has leaked details of its antitrust investigation into Microsoft add an unfortunate layer of drama to what should be a straightforward examination of facts. According to reports, Microsoft has accused the FTC of disclosing non-public details about its ongoing probe into bundling practices, cloud services, and licensing agreements. If true, this breach undermines the FTC’s credibility and raises concerns about whether such investigations are being handled with the impartiality they require.

In light of the recent allegations that the FTC leaked details of its antitrust investigation into Microsoft, it's worth highlighting Microsoft's response. Rima Alaily, Microsoft's corporate vice president and deputy general counsel, stated:

“FTC management violated its ethics guidelines by leaking details, pointing to a pattern of unauthorized disclosures in recent years.”

This perspective underscores the importance of maintaining ethical standards and confidentiality during such investigations, ensuring that all parties are treated fairly and that the integrity of the process is upheld.

Microsoft’s Bundling Isn’t the Problem—It’s a Benefit for Businesses

As someone who works with Microsoft 365 and Azure services daily, I’m struck by how much these investigations seem to miss the point. The FTC’s focus on Microsoft’s bundling practices—like including OneDrive with Office 365—is a prime example. From a business perspective, this isn’t a nefarious scheme; it’s a value-add. OneDrive provides organizations with 1TB of cloud storage per user, often serving as an automatic backup solution. It reduces complexity, eliminates extra costs, and enhances productivity.

This isn’t the first time regulators have targeted tech giants for being too successful. I’ve previously written about the government’s scrutiny of Google (here) and (here). In those cases, regulators seemed to view dominance as inherently problematic, rather than asking whether these companies achieved it by delivering superior products and services. The same flawed approach seems to be happening here.

A further point worth addressing is Microsoft’s position in the cloud infrastructure market. While Azure is a significant player, Amazon Web Services (AWS) remains the larger provider, holding around 31% of the market compared to Azure’s 20%. This clearly shows that Microsoft, despite its strengths, does not dominate every sector it operates in. The FTC’s focus on bundling practices overlooks the broader competitive landscape, where businesses still have significant alternatives. In our business, we use the best tool for the job. When dealing with Microsoft products, a lot of the time, Microsoft’s Azure is the best tool for that job.

Consider Microsoft’s dominance with Word and Excel. These tools are ubiquitous on business desktops because they’re exceptional at what they do—not because Microsoft forces them on anyone. Businesses choose Microsoft 365 because it simplifies workflows, integrates seamlessly, and delivers immense value. Dismantling these integrations to appease regulatory scrutiny wouldn’t help consumers—it would create unnecessary hurdles and costs.

The alleged FTC leak also underscores a troubling lack of transparency in the process. If the agency is willing to bypass its own ethics guidelines to shape the narrative, how can businesses trust that the investigation itself is fair? This isn’t just about Microsoft—it’s about ensuring that regulatory bodies operate with integrity and focus on fostering true innovation, not penalizing success.

If the goal is fair competition, regulators should direct their efforts toward encouraging other companies to innovate and compete with Microsoft on the merits of their products. Penalizing companies for building ecosystems that work and deliver value doesn’t protect consumers; it hurts them.

Microsoft’s integrations are a win for businesses. Let’s not let regulatory overreach—and the potential mishandling of investigations—overshadow that.

Microsoft’s Market Share

In the third quarter of 2024, the global cloud infrastructure services market was dominated by Amazon Web Services (AWS) and Microsoft Azure. Here’s a breakdown of their market shares:

Source: CRN

Microsoft accuses FTC of leaking news of its antitrust investigation - The Verge

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