What you need to know
- Rima Alaily, Corporate Vice President and Deputy General Counsel, Microsoft published a letter on LinkedIn accusing the FTC of leaking confidential information about Microsoft to the press.
- The fallout comes after Bloomberg (later, Reuters) published a story last week saying the FTC was gearing up for an antitrust investigation against Microsoft, unbeknownst to Microsoft.
- Microsoft still hasn’t received notice of an “information demand” that it is being investigated despite requesting clarification from the FTC.
As a seasoned observer with decades of experience in the tech industry, I find myself increasingly concerned about the current state of regulatory affairs, particularly as it pertains to the FTC and its handling of high-profile cases. The recent turn of events involving Microsoft is yet another example of questionable behavior that undermines the trust and credibility of this important regulatory body.
This week, the FTC headed by Chair Lina Khan is making headlines not due to targeting another large corporation, but rather due to allegations of inappropriate conduct, with the agency itself now finding itself under scrutiny.
Last week, a Bloomberg report revealed that the Federal Trade Commission (FTC) has initiated an antitrust probe against Microsoft. This probe reportedly involves a detailed request for information from Microsoft, spanning hundreds of pages. The focus of this investigation appears to be Microsoft’s perceived dominance across various sectors, including cloud computing, software bundles, cybersecurity services, and artificial intelligence products.
Despite Microsoft being informed they were under an antitrust investigation by the FTC, surprisingly, neither a letter nor any response was received from them a week later, even after Microsoft had questioned the validity of the report and the requested antitrust information.
https://www.linkedin.com/watch?v=feed/update/urn:li:ugcPost:7269754209430892548
As per Rima Alaily, Corporate Vice President and Deputy General Counsel at Microsoft, they discovered about this data request, just like everyone else, from the Bloomberg article, not from the Federal Trade Commission (FTC).
Yikes.
Alialy adds more fuel to the fire, commenting that this data leak seems to align with an unfortunate pattern over the past two years of the FTC inadvertently disclosing non-public information. She firmly suggests that the FTC “…thoroughly examine this latest incident and release your findings publicly as soon as feasible.
Trust in the FTC is waning, and the future of Microsoft is unclear
A week following the Bloomberg report, it’s intriguing to note that aside from the FTC and Bloomberg, no one else seems to be aware of the allegations against Microsoft being investigated. This implies that the leak might have occurred prematurely, as it appears that the regulatory agency hasn’t yet informed its target or completed its data request.
The FTC, while having a commendable history of consumer protection, has stumbled in significant cases such as attempting to halt Microsoft’s acquisition of Activision-Blizzard. Furthermore, the practice of focusing on leak investigations to shape public opinion raises doubts about the impartiality and honesty of the agency, as rightly noted by Alaily.
From my perspective as a researcher, I find myself in a state of uncertainty regarding regulations and antitrust investigations following Donald Trump’s election as the next U.S. President. It appears that regulatory measures, particularly those aimed at Microsoft, may see a reduction or even disappear entirely, given that they have not been publicly criticized by the incoming president, unlike companies such as Google, who are already grappling with the possibility of having to sell off significant assets like Chrome.
In recent weeks, Elon Musk, who is both a tech entrepreneur and close associate of Donald Trump, has openly criticized Microsoft and named them in a lawsuit with OpenAI. He’s also taken aim at Apple regarding its App Store fees and its decision to boycott advertising on X.
Experts believe that the nation that comes out on top in the artificial intelligence (AI) competition – either the United States or China – will shape technology for the next hundred years. At present, the US enjoys a significant advantage over China in this field, but there are concerns that if the U.S. government imposes restrictions on its AI-focused companies, it could provide an edge to China that the U.S. cannot afford to lose. Critics argue that pursuing antitrust action against companies like Microsoft, which some claim involves their AI products, would harm the U.S. in this critical technological race.
Of course, all of this must be balanced with AI safety and proposed regulation so that AI does not “doom humanity. “
2025 promises intriguing developments, and it seems likely that the upcoming administration may adopt a more hands-off approach towards corporate oversight. For now, much like Microsoft, we’re eagerly waiting to learn the specifics of what regulations the Federal Trade Commission has in store for us.
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2024-12-04 01:39