A PYMNTS Company

Japan Steps Up Tech Oversight With Microsoft Cloud Probe

By  |  February 25, 2026

Japan’s competition watchdog has carried out an on-site inspection of Microsoft’s Japanese subsidiary amid suspicions of antitrust violations, according to The Japan Times.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    A source familiar with the situation said the Japan Fair Trade Commission (JFTC) visited Microsoft Japan’s office in Tokyo on Wednesday as part of an investigation into whether the company engaged in practices that could limit competition. The individual, who requested anonymity, confirmed reports in domestic media that the probe centers on allegations that Microsoft may be restricting clients from using rival cloud services, per The Japan Times.

    At the heart of the inquiry is Microsoft’s cloud platform, Azure. Authorities suspect the company may be configuring its widely used software offerings, including Microsoft 365, which features applications such as Teams and Word, in a way that makes them unavailable or difficult to operate on competing cloud infrastructure, according to The Japan Times, citing local media reports including the Yomiuri Shimbun.

    Microsoft acknowledged the investigation and signaled its cooperation. “We are fully cooperating with the JFTC (Japan Fair Trade Commission) in their requests,” a company spokesperson said.

    Read more: Disrupting Lumma Stealer: Microsoft Leads Global Action Against Favored Cybercrime Tool

    The reported inspection reflects a broader push by Japanese regulators to address the market dominance of major global technology firms. According to The Japan Times, authorities in recent years have intensified scrutiny of practices seen as potentially undermining fair competition in the digital marketplace.

    In August, the JFTC issued a cease-and-desist order against Google. The regulator determined that Google had placed binding requirements on smartphone manufacturers using its Android operating system in Japan, effectively ensuring that its app marketplace would be installed by default, according to The Japan Times.

    The commission has also examined Amazon’s operations in Japan. In 2024, officials conducted an inspection of Amazon’s Japanese subsidiary over claims that it leveraged its market power to pressure sellers. The JFTC alleged that Amazon used the prominent “buy box” placement on its website to encourage merchants to lower prices, thereby strengthening its position against rival e-commerce platforms, per The Japan Times.

    The latest action involving Microsoft underscores the JFTC’s continued focus on competition within the country’s rapidly evolving technology sector. While the investigation remains ongoing, the outcome could further shape how international tech companies operate in Japan’s cloud computing and digital services markets.

    Source: The Japan Times