The Federal Trade Commission (FTC) has launched a wide-ranging antitrust investigation into Microsoft, focusing on the company’s cloud computing, software licensing, artificial intelligence (AI), and cybersecurity products. The investigation marks new scrutiny of Microsoft’s business practices, reminiscent of the company’s legal battles over bundled software in the 1990s.

The FTC is said to have compiled hundreds of pages of detailed requests for information against Microsoft, reflecting concerns about the bundling of software products such as Microsoft Teams with Office suites and cloud services. Critics argue that this practice creates barriers for competitors like Slack and Zoom, limiting competition in key markets.

Microsoft’s role as a major government contractor has also received attention. The FTC is reportedly investigating security flaws related to Microsoft products, including an incident that affected millions of devices earlier this year. These failures, coupled with Microsoft’s market power, are cited as problems with broader economic implications. The FTC highlighted the risks of market concentration in a November report, saying disruptions at major cloud providers could spill over into important sectors of the economy.

The focus of the investigation is Microsoft Entra ID (formerly known as Azure Active Directory), a widely used tool for authenticating cloud-based software logins. Competitors have raised concerns about Microsoft’s licensing terms, arguing that they undermine competing authentication and cybersecurity providers.

FTC lawyers plan to meet with Microsoft’s competitors in the coming weeks to glean additional insights. According to reports, FTC Chairwoman Lina Khan gave the green light to the investigation before her scheduled resignation in January, leaving the case under a new commissioner expected to be appointed by President-elect Donald Trump. There are doubts about his whereabouts.

Neither Microsoft nor the FTC have publicly commented on the investigation.

Microsoft stock is currently down 1.17% to $422.99.