U.S. Federal Trade Commission Launches Broad Microsoft Investigation ⇥ bloomberg.com

Leah Nylen, Josh Sisco, and Dina Bass, Bloomberg:

The US Federal Trade Commission has opened an antitrust investigation of Microsoft Corp., drilling into everything from the company’s cloud computing and software licensing businesses to cybersecurity offerings and artificial intelligence products.

Seems like a lot of people who thought Microsoft would escape antitrust investigations in the U.S. might have been a little too eager.

This kind of scrutiny is a good thing, and long overdue. Yet one of the unavoidable problems of reducing the influence of these giant corporations now is the pain it is going to cause — almost by definition. If a corporation is abusing its power and scale to such a degree the FTC initiates an investigation, unwinding that will have — to put it mildly — an effect. We are seeing this in the Google case. This is true for any situation where a business or a group of people with too much influence needs correcting. That does not mean it should not happen.

It is true that Microsoft’s products and services are the backbone of businesses and governments the world over. These are delivered through tight integrations, all of which encourages further fealty to this singular solution. For example, it used its dominant position with Office 365 to distribute Teams for free, thereby making it even harder for other businesses to compete. It then leveraged Outlook and Teams to boost its web browser, after doing the same with Windows. If it charged for Teams out of the gate, this would be having a different discussion.

Obviously, the FTC’s concerns with Microsoft’s business practices stretch well beyond bundling Teams. According to this Bloomberg report, the Commission is interested in cloud and identity tying, too. On the one hand, it is enormously useful to businesses to have a suite of products with a single point of management and shared credentials. On the other hand, it is a monolithic system that is a non-starter for potential competitors.

The government is understandably worried about the security and stability risks of global dependence on Microsoft, too, but this is odd:

The CrowdStrike crash that affected millions of devices operating on Microsoft Windows systems earlier this year was itself a testament to the widespread use of the company’s products and how it directly affects the global economy.

This might just be Bloomberg’s contextualizing more than it is relevant to the government’s position. But, still, it seems wrong to me to isolate Windows as the problem instead of Crowdstrike itself, especially with better examples to be found in the SolarWinds breach and its track record with first-party security.