The U.S. Federal Trade Commission (FTC) is scrutinizing Microsoft (MSFT, Financial) for bundling its popular Office software with cybersecurity and cloud services. This practice, including a government deal leveraging cybersecurity crises, aims to boost license sales. Reports from Bloomberg and Financial Times indicate that Microsoft's competitors have complained about these bundling tactics, citing increased competition challenges.
The FTC has issued a civil investigative demand to Microsoft, requesting documents related to these practices. The investigation highlights Microsoft's use of cybersecurity incidents to sell more licenses to the U.S. government, following a meeting with President Biden in 2021. The proposal involved upgrading government software bundles to include advanced cybersecurity products, with the U.S. military among the adopters.
This strategy reportedly exploits security crises to enhance Microsoft's revenue, despite the irony that Microsoft's own security vulnerabilities contributed to the situation. Experts suggest these actions may breach contract and competition laws, potentially leading to an antitrust probe.
