The Federal Trade Commission has launched a comprehensive antitrust investigation into Microsoft, with world’s richest man Elon Musk calling for FTC Chair Lina Khan’s immediate dismissal and suggesting the probe may be short-lived under an incoming Trump administration.

The agency has delivered a detailed, hundreds-of-pages-long information request examining Microsoft’s cloud computing, artificial intelligence, and cybersecurity products. Bloomberg first reported the investigation, which targets the company’s complex business practices and market dominance.

The investigation focuses on Microsoft’s bundling of cloud services with office and security tools, potentially creating unfair market advantages. Competitors have complained that the company’s licensing terms and software packaging make it difficult for rivals to compete effectively.

Microsoft’s wide-ranging technology portfolio – including its Azure cloud platform, AI technologies like Copilot, and extensive cybersecurity services – falls under intense scrutiny. The investigation echoes previous antitrust challenges, reminiscent of the landmark Department of Justice lawsuit in the late 1990s.

Trump administration could bring some changes in the tech industry landscape, including a new FTC chair

Trump’s anticipated administration could significantly alter the regulatory landscape. Unlike the current administration’s aggressive approach to big tech, the incoming president is expected to appoint a more business-friendly FTC chair, potentially softening the investigation’s impact.The company has largely avoided the intense antitrust scrutiny faced by other tech giants like Amazon, Apple, Meta, and Google. However, this investigation reopens questions about Microsoft’s market power and competitive practices.

Elon Musk, a supporter of President-elect Donald Trump, has publicly supported Republican criticism of Khan, declaring “She will be fired soon” in response to a House Oversight Committee report accusing her of abusing regulatory authority.

Sources familiar with the matter reveal that the FTC has been conducting informal interviews with Microsoft’s business partners and competitors for over a year. The probe’s timing is critical, coinciding with Khan’s expected departure when President-elect Donald J. Trump takes office in January.

Microsoft declined to comment on the ongoing investigation. The FTC’s action represents a final attempt by Khan to challenge corporate consolidation before a likely shift in the agency’s leadership and regulatory approach. The changing political backdrop suggests Microsoft may soon face a more lenient regulatory environment.