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Microsoft Faces US Antitrust Investigation Amid Concerns Over Cloud And AI Practices

Microsoft is under scrutiny as the US Federal Trade Commission (FTC) launches a comprehensive antitrust investigation into the tech giant’s business practices. The probe will assess operations across multiple sectors, including cloud computing, software licensing, cybersecurity services, and artificial intelligence.

Key Developments

  • The FTC has reportedly requested extensive information from Microsoft as part of its investigation, following a year-long preliminary inquiry involving interviews with competitors and business partners.
  • The investigation, backed by FTC Chair Lina Khan, could face uncertainty if she steps down in January, as anticipated under a new administration. A Republican successor is expected to adopt a more lenient stance toward tech firms.
  • Microsoft has not issued a statement in response to the ongoing inquiry.

This is not Microsoft’s first encounter with antitrust scrutiny. Competitors have accused the company of restrictive practices, including allegedly locking customers into its Azure cloud services and using licensing policies that critics argue disadvantage rival platforms.

In a related development, Google recently filed a complaint with the European Commission, alleging that Microsoft imposed a 400% premium on customers seeking to use Windows Server with competing cloud providers. Google also claimed Microsoft restricted access to critical security updates for those customers.

Ongoing Tech Sector Probes

Microsoft’s investigation comes amid broader antitrust actions targeting major US tech companies.

  • Meta (Facebook’s parent), Apple, and Amazon have faced accusations of monopolistic practices.
  • Google is defending itself in two high-profile lawsuits, including one concerning competition violations in online search.

In the coming days, FTC lawyers are expected to meet with Microsoft’s competitors to gather further evidence on its business practices. This investigation could have significant implications for the company and the broader tech industry, as authorities worldwide continue to challenge the dominance of tech giants.

Microsoft’s future may hinge on how it addresses these mounting regulatory pressures, particularly as the focus sharpens on its role in cloud computing and AI innovation.

Toyota’s Global Production Declines For 10th Consecutive Month, Yet Sales Show Growth

Despite a consistent drop in global production, Toyota Motor reported an uptick in worldwide sales for the second month in a row, driven by strong demand in the United States and China.

In November 2024, Toyota’s global output fell to 869,230 vehicles, a 6.2% decrease compared to the same month the previous year. This decline was steeper than the 0.8% drop observed in October.

The company’s production in the U.S. dropped by 11.8%, showing slow recovery. However, the production of models like the Grand Highlander and Lexus TX SUV resumed after a four-month hiatus in late October.

In China, Toyota’s production decreased by 1.6%, a smaller drop compared to the previous month’s 9% decline. The company benefited from higher local sales of models such as the Granvia and Sienna minivans, as well as the electric sedan bZ3, developed jointly with BYD.

As Chinese automakers like BYD gain ground, Toyota has decided to establish an independent plant in Shanghai and plans to start manufacturing electric vehicles for its Lexus luxury brand by 2027, according to a report from Nikkei.

Production in Japan, which accounts for about a third of Toyota’s global output, was down 9.3% in November. This was partly due to a two-day production halt at the company’s Fujimatsu and Yoshiwara plants.

Despite the production challenges, Toyota saw a 1.7% increase in global sales, reaching 920,569 vehicles in November, setting a new record for the month. However, for the period from January to November 2024, global production fell by 5.2% year-over-year, totalling around 8.75 million vehicles. During the same period, global sales declined by 1.2%.

These figures include Toyota’s Lexus brand but exclude sales from its group companies, Hino and Daihatsu.

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