The scrutiny of Microsoft’s cloud services continues to intensify as the European Data Protection Supervisor (EDPS) begins a review of compliance related to Microsoft 365. This follows a ruling in March 2024, where the European Commission was found to have violated EU data protection rules concerning Microsoft 365 [9021b6a8]. The Commission was required to respond to the EDPS by December 9, 2024, and on December 10, EDPS Wojciech Wiewiórowski confirmed receipt of the Commission's report, stating that a thorough review will assess compliance with the March order [9021b6a8].
The ongoing investigation into Microsoft’s cloud business by U.S. regulators, particularly the Federal Trade Commission (FTC), is also noteworthy. The FTC is set to investigate Microsoft amid concerns over competition in the cloud market, where Microsoft currently holds a 20% share [8d1e7fc0]. This scrutiny is compounded by the UK's Competition and Markets Authority (CMA) probing Microsoft and Amazon due to customer complaints about being 'locked in' to their services [8d1e7fc0].
In the European Union, Microsoft managed to avoid a formal investigation earlier this year after reaching a multimillion-dollar settlement with rival cloud providers [8d1e7fc0]. However, the EDPS review adds another layer of complexity to Microsoft's operations in Europe, especially as both the Commission and Microsoft are challenging the EDPS decision in legal cases T-262/24 and T-265/24, indicating a prolonged resolution process [9021b6a8].
As the cloud services market continues to grow, with spending projected to reach $675 billion in 2024, the implications of these investigations could significantly impact Microsoft's strategy and operations [8d1e7fc0]. Furthermore, the CMA is also investigating Microsoft's artificial intelligence investments, which could further complicate the regulatory landscape for the tech giant [705e5cc3].
In Japan, the Japan Fair Trade Commission (JFTC) is set to launch a fact-finding survey on the generative AI market, focusing on the concentration of data and resources among major players like Microsoft, Google, and Meta [24fd6491]. This reflects a global trend of regulators tightening their oversight of big tech companies to ensure fair competition and compliance with data protection laws [38c48fdc].