CrowdStrike failure spooks FTC: US regulator to investigate Microsoft's cybersecurity, cloud and software licensing activities

Throughout 2023, there was a lot of information in the media about the confrontation between Microsoft Corporation and the US Federal Trade Commission (FTC). The subject of the dispute was a deal between Microsoft and the gaming company Activision Blizzard, in which the state regulator saw a danger to the market in the form of the emergence of a monopoly.

The litigation is closed, but the FTC again has many questions to Microsoft's activities.

Here's What We Know

The US Federal Trade Commission will investigate the corporation's activities in the area of cloud and software licensing, its own Azure cloud computing service, as well as in cybersecurity and artificial intelligence.

The FTC's main complaint is the cybersecurity of Microsoft's software, as it is the software used by virtually all U.S. government services. As an example of inadequate software security, the global failure of millions of Windows computers , which occurred in July 2024 and was triggered by a failed CrowdStrike security update, is cited. Airports, banks, television stations, government offices, and other critical entities were disrupted around the world due to this failure.

The FTC is still conducting its own investigation, but if problems are found in Microsoft's work, the case may go to court. At the same time, the activities of the company's gaming division (Xbox) are not considered.

Source: Bloomberg