Japan fair trade commission raids Microsoft Japan over antitrust concerns

Japan’s fair trade commission conducted an on-site inspection of Microsoft’s Japanese subsidiary on Wednesday over a suspected violation of anti-trust law, a source close to the matter said.

The source, who declined to be identified, confirmed local media reports that Microsoft Japan in Tokyo is being probed over allegations it is unfairly preventing clients from using cloud platforms developed by its competitors.

“We are fully cooperating with the JFTC (Japan Fair Trade Commission) in their requests,” a spokesperson for Microsoft told AFP.

At issue is Microsoft’s cloud computing server Azure.

The firm is suspected of making its software services, including “Microsoft 365” — known for apps such as Teams and Word — inaccessible on cloud servers other than Azure, local media including the Yomiuri daily said.

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The probe mirrors similar attempts in recent years by Japanese authorities to rein in the monopoly by global tech titans.

In August, the JFTC issued a cease-and-desist order to Google.

Google, JFTC said, was imposing binding conditions on Android smartphone manufacturers in Japan so that its online app store will be installed almost automatically.

In 2024, Amazon’s Japanese subsidiary in Tokyo was similarly inspected for allegations that it is abusing its industry dominance to drive down prices.

Amazon Japan used its coveted “buy box” — a prominent spot on its website — against sellers, pressuring them into lowering prices to give it a competitive edge over rival e-commerce sites, the JFTC said.

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(Except the headline, this story has not been edited by Firstpost staff)