FTC Turns Up Heat On Microsoft As Trump Allies Demand Accountability

For years, Microsoft has enjoyed the image of a dependable American tech titan dominant in cloud computing, entrenched in government contracts, and largely insulated from the kind of political backlash faced by its Silicon Valley peers. That may be changing.

A growing FTC investigation into Microsoft is now putting the company’s cloud dominance and foreign entanglements under the microscope. And according to a former Trump administration official, accountability is long overdue.

Joe Grogan, who served as director of the Domestic Policy Council during President Trump’s first term, applauded the Federal Trade Commission’s probe into whether Microsoft engaged in anti-competitive practices in its cloud business.

“In the last year Microsoft has compromised American security by giving Chinese nationals access to cloud projects at the Pentagon,” Grogan said, arguing that the administration is right to use its authority to rein in corporate overreach.

At the center of the FTC investigation into Microsoft is whether the company makes it difficult for customers to move their data and services to competing cloud providers.

Microsoft Azure is one of the largest cloud platforms in the world, competing primarily with Amazon Web Services and Google Cloud. According to industry estimates, Amazon controls roughly 30% of the global cloud infrastructure market, while Microsoft holds approximately 20–25%. That concentration gives just a handful of firms enormous leverage over government agencies and private businesses alike.

Critics argue that Microsoft has used long-term licensing agreements and technical barriers to discourage customers from switching to rival platforms a practice that, if proven, could raise serious antitrust concerns.

The FTC investigation into Microsoft comes at a time when federal regulators are signaling a renewed willingness to challenge Big Tech dominance.

The controversy intensified in July 2025 after reports revealed that China-based engineers had worked on certain Pentagon cloud systems. Microsoft later stated it adjusted its policies to ensure that no China-based teams provide technical assistance for Department of Defense cloud services.

Still, Grogan contends the episode exposed vulnerabilities that should never have existed.

China remains the United States’ primary geopolitical rival, and cybersecurity threats tied to Beijing have increased dramatically over the past decade. The FBI has repeatedly warned about Chinese cyber-espionage operations targeting American infrastructure and intellectual property.

For critics, the idea that foreign-based engineers could access sensitive defense-related cloud systems underscores the risks of concentrated corporate power combined with global outsourcing.

The FTC investigation into Microsoft is unfolding against another backdrop: the European Union’s sweeping Digital Services Act. The law allows European regulators to penalize companies that fail to remove content deemed illegal or misleading.

Grogan argues that Microsoft has shown a willingness to align with Europe’s regulatory demands even as trade negotiations with the United States remain tense.

To many conservatives, the concern is twofold:

• That American tech companies are accommodating foreign speech restrictions.

• That concentrated market power allows those companies to shape digital ecosystems without meaningful competition.

Will Hild, executive director of Consumers’ Research, has also voiced support for the FTC investigation into Microsoft. He argues that dominant market share combined with ideological activism creates a troubling mix for consumers.

Last year, Consumers’ Research highlighted corporate initiatives at Microsoft ranging from activist donations to internal pay equity analyses based on race and sex. Critics say such moves signal a corporation comfortable leveraging its size and influence to push cultural agendas.

The FTC investigation into Microsoft is part of a larger shift in Washington. Both Republicans and Democrats have expressed skepticism about unchecked tech consolidation, though their motivations often differ.

What makes this moment distinct is the explicit national security framing. When cloud infrastructure underpins military systems, financial markets, and health care networks, anti-competitive behavior is no longer just a pricing issue it becomes a strategic concern.

The United States has spent decades confronting foreign monopolies and state-backed enterprises abroad. Now regulators are asking whether American giants deserve similar scrutiny at home.

For Grogan and other Trump-aligned voices, the message is clear no corporation, no matter how powerful, should be above accountability especially when national security and consumer choice are at stake.

As the FTC investigation into Microsoft unfolds, it may signal a broader turning point in how Washington handles Big Tech power in an increasingly competitive global landscape.

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