In a significant development for the tech industry, U.S. regulators, led by the Federal Trade Commission (FTC), are set to investigate Microsoft’s cloud business over potential anti-competitive practices, according to a report by the Financial Times. This marks the latest in a series of ongoing probes into the practices of tech giants in the rapidly expanding cloud computing market.

The investigation is centered on allegations that Microsoft has been leveraging its dominant position in cloud computing and productivity software to restrict competition. Specifically, regulators are scrutinizing Microsoft’s Azure cloud service and whether the company has been imposing excessively restrictive licensing terms that prevent customers from migrating their data to rival cloud platforms. The concern stems from claims that these practices could hinder fair competition in the cloud space, ultimately limiting consumer choice and inflating prices for businesses reliant on cloud infrastructure.

The scrutiny comes at a time when the cloud computing sector is growing at an exponential rate, with companies of all sizes increasingly relying on cloud services for everything from storage to computing power and software as a service (SaaS) solutions. Microsoft, with its Azure platform, is one of the largest players in this market, competing against rivals like Amazon Web Services (AWS) and Google Cloud.

The FTC’s potential investigation could have far-reaching implications for Microsoft’s cloud business, as regulators assess whether these alleged anti-competitive behaviors violate U.S. antitrust laws. This follows growing concerns about market consolidation and the power of tech giants like Microsoft, which are seen as being able to leverage their dominance in one sector—such as productivity software like Office 365—to unfairly tip the scales in others, including cloud services.

As the FTC prepares to look into these practices, questions loom about whether Microsoft will face legal or financial repercussions. The company, which has been under regulatory scrutiny in both the U.S. and Europe for years, may now need to defend its cloud business strategy in the face of mounting regulatory pressure.

This investigation signals an intensification of global antitrust scrutiny over the power of big tech firms, especially in rapidly evolving markets where they hold significant sway. The outcome of this probe could reshape the future dynamics of the cloud industry, with potential implications for pricing, customer freedom, and competition.