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US Regulator Launches Antitrust Probe Into Microsoft: Big Tech Under Scrutiny

US Regulator Launches Antitrust Probe Into Microsoft: Big Tech Under Scrutiny

pooja bisht
28 Nov 2024 04:37 AM

In a significant development, the US Federal Trade Commission (FTC) has launched an antitrust investigation into Microsoft, signaling a continuation of the regulatory scrutiny faced by Big Tech companies worldwide. This investigation focuses on Microsoft’s software licensing, cloud computing, cybersecurity, and artificial intelligence (AI) practices.

This announcement comes at a pivotal moment as FTC Chair Lina Khan prepares to step down, with the incoming administration potentially taking a more lenient stance on businesses. The investigation raises important questions about market dominance and fair competition in the tech industry.

The Microsoft Probe: Key Allegations

Microsoft is accused of imposing restrictive licensing terms to prevent customers from transferring data from its Azure cloud platform to competitors. This move, critics argue, stifles competition in the productivity software and cloud computing markets.

The FTC’s investigation also aims to assess whether Microsoft's practices in AI and cybersecurity give it an unfair advantage over its rivals. With these areas representing the future of technology, the stakes are incredibly high.

Big Tech Under the Microscope

Microsoft is not the only tech giant facing legal battles. Here’s a snapshot of ongoing cases against other major players:

1. Alphabet (Google)

  • Search Monopoly: A federal judge ruled that Google broke the law by maintaining an illegal monopoly on online search. Remedies such as selling Chrome or Android could be imposed.
  • Digital Advertising: Google is fighting a €2.1 billion lawsuit filed by 32 media groups for losses due to alleged unfair advertising practices.

2. Apple

  • App Store Rules: The European Union fined Apple €1.84 billion for restrictive practices that hinder music streaming rivals.
  • Smartphone Market: A US Department of Justice lawsuit alleges Apple monopolized the smartphone market and raised prices unfairly.

3. Meta Platforms (Facebook and Instagram)

  • Privacy Violations: Meta faces multiple lawsuits, including one from the European Commission for its advertising model.
  • Mental Health Concerns: Dozens of US states have sued Meta for allegedly contributing to a youth mental health crisis.

4. Amazon

  • Consumer Harm: The FTC has accused Amazon of harming consumers with higher prices and misleading them into buying Prime subscriptions.

What’s Next?

The FTC’s investigation into Microsoft could have significant implications for the broader tech industry. If the allegations are proven, it could result in stricter regulations and a shift toward fairer competition.

For consumers and businesses, this could mean more choices, better prices, and an industry less dominated by a handful of giants.

Conclusion

As the global spotlight shines on Big Tech, these investigations highlight the need for balanced growth and ethical practices in the technology sector. Whether these regulatory efforts will lead to meaningful change remains to be seen

Reference from:- https://www.ndtv.com/world-news/factbox-us-regulator-opens-wide-ranging-antitrust-probe-into-microsoft-7122142