On February 25, the Japan Fair Trade Commission conducted an on-site search and seizure of Microsoft’s Japanese subsidiary in Minato, Tokyo on suspicion of violating the country’s Antimonopoly Act, which prevents private monopolization, unreasonable restraints of trade, and unfair methods in business competition (source: Yomiuri Shinbun).
Specifically, Microsoft Japan is suspected of disrupting competitors’ transactions by refusing to allow its proprietary Windows operating system and Microsoft 365 suite services (such as Microsoft Word and Microsoft Teams) to be used on third-party cloud services. The company is also suspected of setting excessively high fees for its aforementioned services.
These practices are seen as a way for Microsoft to drive more users towards its Azure cloud service. By setting conditions that favor Azure users and making services unavailable or expensive for users of competitor cloud services, the company essentially gives itself a head start in any field. Microsoft Japan, in particular, is responsible for developing hardware and software technologies for consumers and business partners.
The Fair Trade Commission has seized materials from the Tokyo offices and is currently interviewing parties related to the case. Depending on the FTC’s findings, the investigation could potentially expand beyond Microsoft’s Japanese subsidiary.
