ProPublica: “The Federal Trade Commission is investigating Microsoft in a wide-ranging probe that will examine whether the company’s business practices have run afoul of antitrust laws, according to people familiar with the matter. In recent weeks, FTC attorneys have been conducting interviews and setting up meetings with Microsoft competitors. One key area of interest is how the world’s largest software provider packages popular Office products together with cybersecurity and cloud computing services, said one of the people, who asked not to be named discussing a confidential matter. This so-called bundling was the subject of a recent ProPublica investigation, which detailed how, beginning in 2021, Microsoft used the practice to vastly expand its business with the U.S. government while boxing competitors out of lucrative federal contracts. At the time, many federal employees used a software license that included the Windows operating system and products like Word, Outlook and Excel. In the wake of several devastating cyberattacks, Microsoft offered to upgrade those license bundles for free for a limited time, giving the government access to its more advanced cybersecurity products. The company also provided consultants to install the upgrades. Vast swaths of the federal bureaucracy accepted, including all of the military services in the Defense Department — and then began paying for those enhanced services when the free trial ended. Former sales leaders involved in the effort likened it to a drug dealer hooking a user with free samples, as they knew federal customers would be effectively locked into the upgrades once they were installed. Microsoft’s offer not only displaced some existing cybersecurity vendors but also took market share from cloud providers like Amazon Web Services, as the government began using products that ran on Azure, Microsoft’s own cloud platform. Some experts told ProPublica that the company’s tactics might have violated laws regulating contracting and competition, and the news organization reported that even some of Microsoft’s own attorneys had antitrust worries about the deals…”
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