According to a recent report from ProPublica, the FTC has begun an investigation into Microsoft's alleged anticompetitive conduct, some of which may have been directed at the U.S. government.
propublica report In the summer of 2021, more than a year after the SolarWinds hack breached multiple government agencies, Microsoft pledged $150 billion over five years to governments to upgrade their digital security. According to ProPublica, the terms of the deal were hard to ignore: Microsoft would provide free access to G5 security features for the first year and provide consultants to help install the product.
However, this agreement had its pitfalls. Once an agency committed to Microsoft's services, they were effectively locked in with high fees if they wanted to switch to a competitor. A Microsoft sales representative told ProPublica that the goal is to “turn the meter” on Azure and gain market power over its main rival, Amazon.
Legal experts are divided on whether the deal crosses into antitrust territory. Some believe it could violate a law that prohibits pro bono service agreements that allow the federal government to receive services from another party unless there is compensation. James Nagle, a legal expert who specializes in the federal contract process, told ProPublica: Another topic is in progress. ”
Some argue that the federal government should be held responsible for not bidding cybersecurity contracts out to other rivals. Peter Cohan, an associate professor of management practice at Babson College, told Business Insider that “Microsoft's actions cannot be considered an illegal monopoly because the government could have switched to another vendor.” He added that other cybersecurity companies could bid to cover some or all of the government costs of switching from Microsoft to another vendor and charge lower fees than G5.
However, Steve Faehl, security lead for Microsoft's federal business, said in a statement to ProPublica that the company's “single goal during this period is to support the government's urgent requests and to improve the agency's security posture.” continues to be targeted.” A sophisticated nation-state threat actor. ”
Read more at ProPublica here.
Lucas Nolan is a reporter for Breitbart News covering free speech and online censorship issues.
