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FTC Investigates Microsoft Amid Concerns of Antitrust Practices
John Lopatka, a former consultant to the Federal Trade Commission (FTC) and current antitrust law professor at Penn State, remarked on the recent scrutiny of Microsoft by the agency, indicating that it follows a “very familiar pattern” reminiscent of past antitrust issues the company faced.
“The situation recalls the Microsoft case from years ago,” Lopatka noted, emphasizing his expertise as a co-author of a book on the earlier investigation.
In light of these developments, the FTC has issued a civil investigative demand to Microsoft, which functions similarly to a subpoena, compelling the tech giant to provide various documents and information pertinent to the investigation. Microsoft has acknowledged receipt of the request.
David Cuddy, a representative for Microsoft, refrained from commenting on the specifics of the ongoing investigation but characterized the FTC’s request as “broad” and “wide-ranging,” suggesting that some of the demands may not be reasonable. Cuddy did not offer specific examples of the requests. The FTC has chosen not to comment on this matter.
This investigation follows a public comment period in 2023, wherein the FTC sought insights into the operational methods of cloud computing firms. The agency expressed its ongoing interest in assessing whether certain business practices hinder competitive practices within the market.
The latest demand issued to Microsoft could potentially mark one of the final actions of FTC Commissioner Lina Khan during her tenure as chair, especially significant as the Biden administration comes to its conclusion. The continuation and direction of the investigation will ultimately depend on the decisions of the incoming commission leadership.
In a recent announcement, President-elect Donald Trump indicated plans to appoint Commissioner Andrew Ferguson, a Republican, as chair of the FTC. Following this news, Ferguson publicly stated on X that, “At the FTC, we will end Big Tech’s vendetta against competition and free speech,” and pledged to position America as a leader in technology and innovation.
Additionally, Trump noted intentions to nominate Mark Meador, a Republican lawyer with experience at both the FTC and the Justice Department, as a commissioner. He has been described as an “antitrust enforcer” and has affiliations with efforts that promote the breakup of major tech firms like Google, having previously worked as an aide to Senator Mike Lee, a GOP advocate for antitrust actions.
Doris Burke contributed research.
This story originally appeared on ProPublica.
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arstechnica.com