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Home»Business»Microsoft’s cloud and AI business is struggling, but how Elon Musk’s prediction could be ‘good news’ for the company
Business

Microsoft’s cloud and AI business is struggling, but how Elon Musk’s prediction could be ‘good news’ for the company

By November 28, 2024No Comments2 Mins Read
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The US Federal Trade Commission has launched a comprehensive antitrust investigation into Microsoft, and the world’s richest man, Elon Musk, has called for the immediate firing of FTC Chair Lina Khan, saying that under the incoming Trump administration, He suggested that the investigation may be short-lived.
The agency filed hundreds of pages of detailed requests for information examining Microsoft’s cloud computing, artificial intelligence and cybersecurity products. The investigation targeted the company’s complex business practices and market power, Bloomberg first reported.
The investigation focuses on Microsoft’s bundling of cloud services with office and security tools that could create an unfair market advantage. Competitors complain that the company’s licensing terms and software packages make it difficult for them to compete effectively.
Microsoft’s broad technology portfolio, which includes the Azure cloud platform, AI technologies like Copilot, and a wide range of cybersecurity services, has come under intense scrutiny. The investigation reflects past antitrust challenges reminiscent of the landmark Justice Department cases of the late 1990s.

The Trump administration may bring some changes to the technology industry, including the appointment of a new FTC chairman.

The anticipated Trump administration could significantly change the regulatory landscape. Unlike the current administration’s aggressive approach to big tech, the next president is expected to appoint a more pro-business FTC chairman, which could soften the impact of the investigation.
The company has largely avoided the tough antitrust scrutiny faced by other tech giants like Amazon, Apple, Meta and Google. But the investigation has once again raised questions about Microsoft’s market power and competitive practices.

Elon Musk, a supporter of President-elect Donald Trump, publicly supported Republican criticism of Khan, responding to a House Oversight Committee report accusing him of regulatory abuse, saying, “She will soon He will be fired.”
Sources familiar with the matter said the FTC has been conducting informal interviews with Microsoft’s business partners and competitors for more than a year. The timing of the investigation is critical, coinciding with Khan’s expected resignation when President-elect Donald J. Trump takes office in January.
Microsoft declined to comment on the ongoing investigation. The FTC’s action represents Mr. Khan’s last attempt to challenge the merger before an expected change in the agency’s leadership and regulatory approach. The changing political landscape suggests that Microsoft may soon face a more permissive regulatory environment.

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