The US Federal Trade Commission has launched an investigation into Microsoft, marking a potential shift for the tech giant which had previously avoided the antitrust scrutiny faced by peers like Google, Meta, Amazon, and Apple. The probe, initiated in 2024 and continuing under the Trump administration, utilizes Civil Investigative Demands to gather information regarding Microsoft's cloud services, artificial intelligence strategies, and software licensing practices. According to documents reviewed by The Verge, the FTC is specifically concerned about exclusionary behavior in the Azure cloud market and Microsoft's dominant position in the AI sector. The investigative requests, spanning over 15 pages, seek details on business agreements, product interoperability, bundling tactics, pricing structures, and barriers to entry for competitors. The agency aims to determine if Microsoft has engaged in unfair methods of competition in violation of the FTC Act. Microsoft has responded by stating it is fully cooperating with the investigation. A spokesperson emphasized that the company's practices promote competition and deliver innovation. However, the probe follows various industry complaints. Some customers allege that changes to Microsoft's 2019 licensing terms increased costs for running Windows software outside of Azure. In 2023, Google accused Microsoft of leveraging its dominance to secure an unfair advantage in cloud markets. Additionally, a 2024 investigation revealed that Microsoft used free cybersecurity upgrades tied to Azure to gain traction among US government agencies, potentially making it difficult for those agencies to switch vendors later. This investigation mirrors historical challenges Microsoft faced two decades ago, when a court ruled that its bundling of Windows with Internet Explorer constituted an illegal monopoly. While that case resulted in a settlement rather than a breakup, it significantly shaped the company's compliance approach. Microsoft is not the only major target of global regulators; similar inquiries into its cloud services are currently underway with the European Commission, the UK Competition and Markets Authority, and the Japan Fair Trade Commission. The outcome of this US probe remains uncertain. The FTC staff must first decide whether to recommend a legal complaint, which would then require a vote by the two Republican commissioners. Experts note that while Microsoft has a robust compliance program that has helped it avoid recent breakup threats, the sheer scale of its market position makes it an inevitable target. A lawsuit could have profound implications for the AI industry, where a handful of companies are vying for dominance. Even if Microsoft ultimately prevails, antitrust litigation often spans years and forces intense scrutiny of internal operations. The resolution of this case, alongside ongoing litigation against other tech giants, will likely influence the competitive trajectory of the entire information services sector.