The U.S. Federal Trade Commission (FTC) has opened a broad antitrust investigation into Microsoft Corp. (MSFT) that aims to investigate everything from the company’s cloud computing business to its artificial intelligence (AI) products.
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Bloomberg was the first to report that the FTC is investigating Microsoft over anticompetitive practices. The investigation is reportedly also looking into the company’s software licensing business and cybersecurity offerings.
After spending more than a year interviewing competitors and business partners, antitrust enforcement officers have now requested that Microsoft turnover information directly to the government agency, according to media reports. The investigation has been approved by current FTC Chair Lina Khan.
Going After Big Tech
Microsoft is not the only mega-cap technology company to be targeted by the FTC. The government agency has gone after other high-profile tech companies in recent years, notably Alphabet (GOOGL) over its near-monopoly position in online search.
This is also not the first time Microsoft has had to deal with antitrust actions. The company was famously targeted in an antitrust case in the late 1990s concerning its dominant Windows operating system. This time, the FTC began to investigate Microsoft following a string of cybersecurity incidents involving the company’s various products.
Microsoft is a top government contractor, providing software and cloud services to numerous U.S. agencies, including the Department of Defense. MSFT stock has risen 13% so far this year.
Is MSFT Stock a Buy?
The stock of Microsoft has a consensus Strong Buy rating among 29 Wall Street analysts. That rating is based on 26 Buy and three Hold ratings assigned in the last three months. The average MSFT price target of $496.92 implies 17.48% upside from current levels.
