Microsoft Accuses FTC of Leaking Antitrust Investigation, Demands Probe

Riley King

Riley King

December 03, 2024 · 3 min read
Microsoft Accuses FTC of Leaking Antitrust Investigation, Demands Probe

Microsoft has accused the Federal Trade Commission (FTC) of improperly leaking news of its antitrust investigation into the company's cloud, software licensing, AI, and cybersecurity offerings. In a letter to the FTC's inspector general, Microsoft's corporate vice president and deputy general counsel Rima Alaily demanded an investigation into the alleged leak and requested that the findings be made public.

The controversy began when Bloomberg reported last week that the FTC had launched an antitrust probe into Microsoft's businesses. The Verge later confirmed the investigation, which has sparked concerns about the company's growing presence in the tech industry. Microsoft claims it learned about the FTC's information demand "like the rest of the world, through the Bloomberg story," and that even when it inquired with FTC staff about the validity of the story, they wouldn't confirm the information demand existed.

Alaily's letter suggests that the information and sourcing in the Bloomberg story "strongly suggests" the details came from "within the FTC." She cites a September report from the FTC inspector general that found a "steadily increasing" volume of "unauthorized disclosures" of nonpublic information to the press. The FTC declined to comment on the Microsoft letter, fueling speculation about the agency's handling of sensitive information.

This is not the first time Microsoft has taken a more aggressive approach to antitrust scrutiny. In October, Alaily accused Google of launching an astroturf group "to discredit Microsoft with competition authorities, and policymakers and mislead the public." Microsoft has largely flown under the radar in past years as a target of antitrust lawsuits, while its Big Tech peers were hit with complaints from US regulators. However, the company has faced increasing scrutiny in both the US and Europe amid major cybersecurity issues, its acquisition of game studio Activision Blizzard, and its partnership with OpenAI.

The fate of any existing investigation will ultimately depend on how officials in the incoming Trump administration view the matter. As the tech industry continues to grapple with antitrust concerns, Microsoft's accusations against the FTC have sparked a heated debate about the agency's handling of sensitive information and its role in regulating the tech giants. The outcome of this investigation will have significant implications for the industry, and Microsoft's demand for transparency is a crucial step in ensuring accountability.

The FTC's inspector general will now investigate Microsoft's claims and determine whether agency management improperly leaked news of the antitrust investigation. The outcome of this probe will be closely watched, as it could have far-reaching implications for the tech industry and the role of regulatory agencies in overseeing it. As the antitrust landscape continues to evolve, Microsoft's accusations against the FTC serve as a timely reminder of the need for transparency and accountability in the tech sector.

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