The Federal Commerce Fee (FTC) is reportedly investigating Microsoft prefer it’s 1998. Within the waning days of the Biden administration, outgoing chair Lina Khan’s probe is alleged to be choosing up steam, in accordance with ProPublica. The FTC is especially involved with Microsoft’s bundling of ubiquitous Workplace merchandise with cybersecurity and cloud computing companies. That features a deal to improve authorities bundles for a restricted time, which basically had the impact of utilizing a authorities cybersecurity disaster to promote extra licenses.
It provides extra element to reviews from Bloomberg and the Financial Times in November about an FTC probe into the Home windows maker. The publications stated Microsoft’s rivals complained that its bundling of its standard software program with cloud companies made it more durable to compete. ProPublica says FTC attorneys have not too long ago interviewed and scheduled conferences with Microsoft’s rivals.
Microsoft confirmed to ProPublica that the FTC issued a civil investigative demand (basically a subpoena), forcing the corporate handy over info associated to the case. A Microsoft spokesperson informed the publication — with out offering on-the-record examples — that the FTC doc is “broad, extensive ranging, and requests issues which are out of the realm of risk to even be logical.”
The investigation follows a separate ProPublica report from November about how Microsoft appeared to use a collection of cyberattacks to promote extra licenses to the US authorities. Following a gathering with President Biden in the summertime of 2021, the corporate was stated to have provided to improve the federal government’s current bundles (together with Home windows and its Workplace suite) to a costlier model that added its superior cybersecurity merchandise. Microsoft additionally despatched consultants to put in the upgrades and practice staff to make use of them.
Many divisions of the US authorities accepted — together with the entire Protection Division’s army companies — after which started paying for the costlier bundles after the trial ended. (The effort of switching to a unique cybersecurity product after the trial ended virtually assured that might be the case.) ProPublica’s account basically paints Microsoft as exploiting a cybersecurity disaster to increase gross sales and pad its backside line. Simply late-stage capitalism issues, y’all.
Satirically, the gross sales tactic resulted from safety lapses from — you guessed it — Microsoft. Biden’s request from Large Tech leaders to spice up authorities cybersecurity adopted the SolarWinds assault that exploited a vulnerability in a Microsoft identification service. The corporate reportedly knew the app contained a “safety nightmare” that allow hackers spoof authentic staff and probe delicate info with out elevating suspicion. However patching the flaw would add friction to authorities logins when the corporate was competing for US contracts. Microsoft reportedly opted to remain mum as a substitute of danger shedding enterprise.
In keeping with specialists who spoke to ProPublica, the federal government trial gross sales scheme may have violated laws on contracting and competitors. The publication reported that even Microsoft’s attorneys apprehensive the deal would spark antitrust issues.
If this sounds acquainted, it echoes the federal government’s 1998 antitrust lawsuit in opposition to Microsoft. Bundling was additionally a star of that present, with the FTC accusing the corporate of partaking in anticompetitive practices by together with Web Explorer with Home windows, a transfer considered in these early days of the web as stifling rivals like Netscape.
This text initially appeared on Engadget at https://www.engadget.com/big-tech/the-ftcs-microsoft-antitrust-probe-reportedly-focuses-on-software-bundling-193545163.html?src=rss
