The U.S. Federal Trade Commission (FTC) has launched an antitrust investigation into Microsoft, focusing on whether it has set up barriers through cloud software and artificial intelligence products to illegally suppress competition in the enterprise computing power market.

According to people familiar with the matter, the FTC recently issued Civil Investigative Demands (CIDs) — which are effectively subpoenas — to at least six companies that compete with Microsoft. The investigation covers Microsoft's software licensing terms and other business practices, with the core being to verify whether Microsoft intentionally reduces the compatibility of its products with competitors' cloud services.

The regulator is particularly concerned about Microsoft's practice of bundling AI tools, security and authentication software with core products such as Windows and Office. Such practices may force enterprise users to rely on Microsoft's Azure cloud infrastructure in order to use its AI services, thereby squeezing the living space of third-party cloud vendors.

Microsoft previously argued that its products are not fully interoperable with some competitors' cloud platforms due to differences in technical features. However, the FTC's intervention indicates that regulators are wary of the market monopoly risks behind these "technical barriers."

Currently, the enterprise computing power market is being restructured amid the AI wave, with cloud vendors competing to integrate large models and infrastructure. Microsoft has gained a head start in the enterprise AI transformation process by virtue of its exclusive partnership with OpenAI and the installed base advantage of Office 365. This investigation may have a profound impact on the bundling model of cloud services and AI products.

The FTC has not disclosed the investigation timeline, but if Microsoft is found to have engaged in anti-competitive behavior, it may be required to adjust its licensing policies or face fines. Microsoft has not commented on the investigation for the time being.