Reports claim Azure is "suspected of monopoly," Japan Fair Trade Commission conducts surprise inspection of Microsoft

IT House, February 25 — This afternoon, according to Nikkei News citing sources, Japan’s Fair Trade Commission raided Microsoft’s Japan office to investigate whether Microsoft engaged in unfair competition by restricting Azure customers from using other cloud services.

The investigation focuses on potential violations of the unfair trade provisions in the Anti-Monopoly Law. The agency is also seeking information from Microsoft’s headquarters in the United States.

Azure is currently competing fiercely with Amazon Web Services and Google Cloud for global cloud market share. IT House learned from reports that this action is part of regulatory efforts to maintain fair competition in the tech industry.

Sources say Microsoft Japan is suspected of setting technical or fee conditions that make it difficult for customers to run Microsoft software on non-Azure platforms or require higher costs.

It is reported that Windows Server and Microsoft 365’s dominance in the enterprise market are key factors in Microsoft’s push to migrate customers to Azure. The Japanese subsidiary is accused of restricting the availability of these key services on other cloud platforms to steer customers toward Azure.