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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.

Bitcoin Surges 23% In A Week As Investor Optimism Returns

Bitcoin was on track for a weekly gain of around 23% on Friday as a series of positive macroeconomic and policy developments boosted investor sentiment.

The cryptocurrency was trading about 6% higher at roughly $77,000, up from around $62,800 at the start of the week. Crypto-related stocks also rallied, with Coinbase and Circle gaining more than 9%, while Strategy rose 7%.

Macro Factors Fuel Rally

Bitcoin’s latest surge began Wednesday after Treasury yields fell sharply following a major intervention by the U.S. Treasury in the bond market. Lower yields eased pressure on risk assets and helped trigger a broader move into cryptocurrencies.

The rally was further amplified by a major short squeeze. Around $2.7 billion in crypto short positions were liquidated, according to CoinGlass.

Max Stuedlein, head of Partnerships at Sygnum APAC, said the move reflected an alignment of macroeconomic and policy catalysts, including the Treasury’s decision to increase buybacks of longer-dated government debt.

Clarity Act Boosts Sentiment

Investor confidence improved further on Thursday as the White House and crypto industry leaders made a final push to advance the Clarity Act in the coming weeks.

The legislation is widely viewed as a potential catalyst for the crypto market, although its chances of passing remain relatively limited.

Despite the rally, bitcoin remains well below its 2026 high of $94,820 reached in January and its all-time high of $126,198, set last October.

Analysts See More Volatility Ahead

Lucy Gazmararian, founder and managing partner at Token Bay Capital, said the crypto market may be approaching the end of its bear cycle.

She expects bitcoin could experience one more decline of around 20% before the market turns, pointing to historical cycles and the recent liquidation of heavily leveraged short positions.

Gazmararian also described bitcoin as a long-term hedge against monetary debasement, while warning that its short-term price remains highly volatile and driven by market cycles.

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