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Microsoft Demands FTC Investigation into Alleged Antitrust Probe Leak

By  |  December 3, 2024

Microsoft has formally requested an investigation into the Federal Trade Commission (FTC) after reports surfaced that details of an antitrust investigation into the tech giant were leaked. The company has asked the FTC’s inspector general to examine whether senior management at the agency disclosed nonpublic information about the probe and to release the findings publicly.

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    According to The Verge, the FTC is currently investigating Microsoft’s cloud computing, software licensing, artificial intelligence (AI), and cybersecurity operations. The report, first revealed last week, was later corroborated by The Verge. Microsoft has expressed concerns that news of the investigation reached the public before it was informed of any formal inquiry.

    Microsoft Alleges FTC Ethics Violation

    In a letter to the FTC, Rima Alaily, Microsoft’s corporate vice president and deputy general counsel, accused the agency of breaching its own ethical standards. Alaily pointed to FTC guidelines, which classify the existence of an investigation as “nonpublic information” unless specifically approved for disclosure by the agency’s Office of Public Affairs or deemed in the public interest.

    Related: Microsoft Faces £1.2 Billion Lawsuit in UK Over Cloud Software Licensing Practices

    The letter also referenced a recent report by the FTC’s inspector general, which found an increase in unauthorized leaks to the media over the past two years. Alaily argued that the Bloomberg report “strongly suggests” the information was leaked from within the agency, describing the alleged breach as part of a troubling trend.

    “The details disclosed appear to be consistent with an unfortunate pattern of the FTC strategically leaking nonpublic information,” Alaily wrote, per Bloomberg. She also noted that Microsoft only became aware of the FTC’s investigation through the media and has not received confirmation of the agency’s information request.

    FTC Under Fire Amid Heightened Scrutiny of Microsoft

    The FTC has declined to comment on Microsoft’s claims. The issue arises as the agency intensifies its focus on Big Tech, with Microsoft increasingly falling under regulatory scrutiny. Once a relatively quiet presence in antitrust circles compared to companies like Google, Amazon, and Meta, Microsoft has faced growing examination in the United States and Europe. This includes attention surrounding its acquisition of gaming company Activision Blizzard and its involvement in AI through a partnership with OpenAI.

    Microsoft’s letter also reflects its evolving strategy in addressing regulatory challenges. In October, Alaily accused Google of orchestrating a smear campaign against Microsoft through an astroturfing group, alleging efforts to mislead regulators and the public.

    Source: The Verge