The US Federal Trade Commission (FTC) is preparing to commence its probe over potential anti-competitive practices in Microsoft‘s cloud computing business, reported the Financial Times, citing people aware of the matter.
The regulator is looking into claims that Microsoft may be using its market power in productivity software to impose restrictive licensing terms, making it harder for customers to move their data from Azure to competing platforms.
Among the tactics being allegedly used include raising subscription fees for those who leave, charging high exit fees and making its Office 365 products incompatible with rival cloud platforms, according to people with knowledge of the matter.
The commission is yet to formally request documents or other information from Microsoft as part of the inquiry.
The decision to commence an official investigation would come after the commission asked for feedback from industry participants and the public on the business practices of providers of cloud computing services.
In November of the previous year, the FTC disclosed that the majority of the feedback pointed to concerns about competition, particularly regarding software licensing practices that limit the use of certain software on other cloud platforms.
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The tech major also drew scrutiny from international regulatory authorities over similar issues.
The UK Competition and Markets Authority is probing Microsoft and Amazon after Ofcom found complaints raised by customers of being “locked in” to one provider, which demands high fees to leave.
In July, Microsoft avoided an official investigation into its cloud business in the EU after striking a deal with a group of competitor cloud providers.
Last month, Microsoft unveiled plans for a €4.3bn ($4.75bn) investment to expand its hyperscale cloud and AI data centre infrastructure in Italy over the next two years.
As part of the funding, the company will also provide digital skills training to more than one million Italians by the end of next year.
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