National Report
In 1998, the Department of Justice (DOJ) during the Clinton Administration sued Microsoft for Antitrust violations, and in 2000, Justice Thomas Penfield Jackson found them to be guilty in a number of ways. https://www.justice.gov/atr/us-v-microsoft-courts-findings-fact
Principally, the company participated in:
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Providing false and misleading statements
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Tampering with evidence, an example being executive emails
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Caused Courtroom distractions
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Violated the trial judge’s established impermissible ex parte contacts, such as secret interviews with the media
Microsoft was able to secure a softer settlement with the Bush Administration DOJ but he key finding that remained were upheld and Microsoft was ordered to:
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Not force restrictive contracts on industry partners
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Open some of its technology to outsiders
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Give software and hardware companies the same programming interfaces as Microsoft middleware
The problem is the company continues to exercise these anti-competitive practices and these now, are worth considering as a threat to national security.
Microsoft’s monopolistic licensing practices across Microsoft 365 and Azure leverage the company’s massive market share to stifle innovation and limit competition. By bundling services and creating an ecosystem where these platforms work seamlessly together, Microsoft effectively locks in users, making it costly and disruptive for businesses to switch to competitors. Restrictive licensing agreements and cloud interoperability limitations further reinforce Microsoft’s control, preventing smaller competitors from gaining a foothold and reducing the incentive for new entrants to innovate in both the software and cloud services markets.
Microsoft’s dominant market position particularly as it relates to its cloud (Azure) and productivity software (Office 365) has raised concerns abroad. For example, the United Kingdom is investigating Microsoft’s hiring of AI staff as they look to build their new AI division and the E.U. has charged Microsoft with antitrust violations for its licensing behavior. Furthermore, South Africa is investigating the company over its cloud computing licensing programs.
Due to Microsoft’s dominant market share, the company has grown lax in its attention to its Cybersecurity. As you’ll recall, in 2023 China hacked Microsoft and stole thousands of emails from key American officials. The Department of Homeland Security’s Safety Review Board criticized the company for its “shoddy Cybersecurity practices, a lax corporate culture and a deliberate lack of transparency.” The aforementioned hack leaked emails from numerous top American officials which showed our nation’s over reliance on the company’s productivity software. Microsoft’s anti-competitive behavior has led to Cybersecurity issues that threaten our national data. It’s well past time for these practices to be investigated and addressed. I urge you both to call on the Federal Trade Commission to investigate Microsoft’s anti-competitive licensing practices and use the Senate’s investigatory powers to address Microsoft’s monopolistic behavior.