FTC Investigates Microsoft Cloud Practices

(Reuters) – The U.S. Federal Trade Commission is preparing to launch an investigation into anti-competitive practices at Microsoft (NASDAQ:MSFT)'s cloud computing business, sources familiar with the matter told Reuters on Thursday.

The agency is examining allegations that the software giant is potentially abusing its market power in productivity software by imposing punitive licensing terms to prevent customers from moving their data from its Azure cloud service to other competitive platforms, the sources said.

The Financial Times first reported the probe on Thursday.

Tactics being examined include substantially increasing subscription fees for those that leave, charging steep exit fees, and allegedly making its Office 365 products incompatible with rival clouds, according to the report.

The FTC declined to comment while Microsoft did not immediately respond to Reuters' requests for comment.