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FTC launches investigation into Microsoft over bundling

    John Lopatka, a former FTC adviser who now teaches antitrust law at Penn State, told ProPublica that the Microsoft actions detailed in the news organization's recent reporting followed “a very familiar pattern of behavior.”

    “It echoes the Microsoft case” from decades ago, said Lopatka, who co-authored a book about that case.

    In the new investigation, the FTC has sent Microsoft a civil investigative demand, the agency's version of the subpoena, forcing the company to turn over information, people familiar with the investigation said. Microsoft confirmed it has received the document.

    Company spokesman David Cuddy did not comment on the details of the investigation, but said the FTC's demand is “broad and sweeping and asks things that are beyond the realm of possibility to even make sense.” .” He declined to give real-life examples. The FTC declined to comment.

    The agency's investigation follows a public comment period in 2023 in which it sought information about the business practices of cloud computing providers. When that was finalized, the FTC said it was continually interested in whether “certain business practices impede competition.”

    The recent demand against Microsoft represents one of FTC Commissioner Lina Khan's final moves as chair, and the investigation appears to be gathering steam as the Biden administration comes to a close. However, the new leadership of the committee will decide the future of the investigation.

    President-elect Donald Trump said this month that he will elevate Commissioner Andrew Ferguson, a Republican attorney, to lead the agency. Following the announcement, Ferguson said in a post on X: “At the FTC, we will end Big Tech's vendetta against competition and free speech. We will ensure America becomes the world's technology leader and the best place for innovators to bring new ideas to life.”

    Trump also said he would appoint Republican attorney Mark Meador as commissioner, describing him as an “antitrust enforcer” who previously worked at the FTC and the Justice Department. Meador is also a former aide to Sen. Mike Lee, a Utah Republican who introduced legislation to break up Google.

    Doris Burke contributed research.

    This story originally appeared on ProPublica.