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- Cover the window: an antitrust investigation has been launched against Microsoft
Cover the window: an antitrust investigation has been launched against Microsoft
An antitrust investigation has been launched against Microsoft; the corporation is suspected of abusing its dominant position in the software market. One of the reasons for the proceedings is information security problems that have led to failures in the operation of the company's products around the world. Experts warn thatMicrosoft's vulnerabilities may threaten Russian users as well. Whether the proceedings can shake the position of the IT giant - in the material "Izvestia".
Boiling point
The US Federal Trade Commission (FTC) has launched a large-scale antitrust investigation against Microsoft. It concerns the business of licensing, software and cloud computing. This was reported by a Reuters source.
Microsoft is suspected of abusing its position in the software market through the introduction of cartel licensing terms. This prevents users from moving their data from the Azure cloud service to other competing platforms.
In addition, Google previously accused Microsoft of forcing customers to pay a 400% markup for the ability to use Windows Server on competing cloud operators' platforms.
Another issue the Federal Trade Commission is looking into involves cybersecurity concerns and artificial intelligence products.
The scrutiny of Microsoft, according to Bloomberg insiders, has intensified after a series of incidents related to the information security of the company's products. That said, the corporation is currently a leading government contractor, providing software and cloud services to many federal agencies, including the Pentagon.
Microsoft's cybersecurity shortcomings, combined with its position as a government contractor, are viewed by the FTC as an example of the company's problematic market power.
In particular, the CrowdStrike failure that affected millions of devices running Microsoft Windows systems earlier this year is a testament to the company's widespread adoption and impact on the global economy.
The big purge
The outcome of the investigation against Microsoft, meanwhile, is not entirely clear amid Donald Trump's rise to power. He is expected to appoint a more business-friendly Republican as FTC chairman.
In the past, however, the Trump administration has aggressively enforced antitrust laws. A change in administration does not necessarily mean an end to ongoing investigations by regulators.
U.S. President-elect Donald Trump
By the way, the fight against restricting competition is not only against Microsoft. US antitrust authorities have launched a campaign against anti-competitive practices of large technology companies. In particular, the owners of Facebook Meta Platforms (recognized as extremist and banned in Russia), Apple and Amazon.com Inc. were accused of maintaining monopolies.
Alphabet (Google) has also been hit. The company faced two lawsuits. In one of them, the judge ruled that the organization illegally hindered competition in the search engine market. It is noteworthy that Microsoft CEO Satya Nadella testified against Google during the proceedings.
Expected Consequences
TheFTC investigation could lead to serious consequences for Microsoft, including fines, changes in business practices and increased regulation, admits Sergey Kravtsov, a member of the board of directors of ROSA and Rutek.
- The company has already faced antitrust suits in the past, and the new investigation may affect its reputation and financial performance," he recalls.
In addition, it is possible that a lawsuit may be initiated with various demands, for example, to ban the inclusion of Teams as a free component in office software packages, does not rule out IT-architect of the practice "Technological Transformation" of Reksoft Consulting Alexander Cherny.
Nevertheless, Microsoft has dominated the market for decades, and its ecosystem is so deeply integrated into corporate and government processes that it is difficult to imagine the real impact of the antitrust case, Kravtsov said. The company has enormous financial and legal resources to defend its position.
However, the situation with the investigation highlights an important problem - the dependence of government and corporate entities on a single supplier whose products are often criticized for vulnerabilities. This makes one think about the need for diversification, notes Izvestia's interlocutor.
- The issue of cybersecurity is becoming critical, especially for strategically important organizations such as the Pentagon. But the reality is that the market is used to Microsoft products, and switching to alternative solutions is an extremely labor-intensive and costly process," Kravtsov warns.
Systemic problem
Specific evidence that Microsoft cannot protect its customers, however, has not yet been presented, emphasizes Maria Gordenko, a senior lecturer at the Computer Science Department of the National Research University Higher School of Economics. Nevertheless, it is necessary to understand all the risks associated with digitalization.
- Despite a rather powerful cybersecurity system, hackers can find loopholes in order to obtain users' personal data, introduce an exploit, use a client's device as a botnet, and so on. We have to admit that Microsoft is actively facing criticism due to shortcomings in cybersecurity," the Izvestia interlocutor notes.
This is largely due to the fact that Windows OS and Microsoft application software have been created over decades and take into account compatibility with many past versions, reminds Dmitry Khomutov, director of Ideco.
- In such a situation, it is indeed extremely difficult to ensure the security of developed software, and there are many vulnerabilities. But it is incorrect to consider this software "pathologically vulnerable"," the expert is convinced.
However, it is not the first time that Microsoft security issues have been raised, and this indicates systemic problems in the company's approach to data protection, notes Sergey Kravtsov.
- With a huge number of users around the world, including large government and corporate structures, Microsoft is responsible for the security of its products. But frequent reports of hacks and vulnerabilities, including recently discovered cases, show that the company's efforts in this area may be insufficiently effective," the Izvestia interlocutor believes.
This is especially important in the context of working with government contractors such as the Pentagon. Vulnerabilities in the systems used by such important structures not only undermine confidence in Microsoft, but can also jeopardize the national security of the United States, the expert believes.
A striking example is the recent situation with the crash of 8.5 million computers running Microsoft Windows operating systems, which occurred as a result of the Falcon security software update from CrowdStrike. The simultaneous absence of cases of failure of computers running Apple's MacOS demonstrates that Microsoft has problems with ensuring the stability of its operating systems, says Alexander Cherny.
The benefit of import substitution
All customers using Microsoft products, including Russian users, may be exposed to risks due to vulnerabilities. However, the degree of this risk depends on the specific circumstances of software use and security measures taken by users, points out Maria Gordenko.
Vulnerabilities in systems can affect customers regardless of their location, confirms Dmitry Savitsky, owner of the CommuniGate Pro product.
- If Microsoft discovers and fixes the vulnerabilities, it will guarantee security for users, regardless of their citizenship or place of residence. But if the vulnerabilities are serious, Russian users may encounter problems, especially if access to OS updates is limited or difficult," the expert explains.
Nevertheless, for the most part, Russians are not in danger from the problems observed by Microsoft, notes Dmitry Khomutov. Domestic companies continue to actively leave Google and Microsoft corporate services.
- Over 2024, the number of users has decreased by 26% and 40% respectively. Consumers are increasingly favoring the domain mail of domestic hosting providers. This trend has been observed for several years, but recently the rejection of Western OSes has been most noticeable," the expert points out.
In the context of cybersecurity, the transition to Russian software is especially important, emphasizes Sergey Kravtsov.
- The use of domestic operating systems can reduce the risks associated with potential vulnerabilities in foreign products and ensure a more rapid response to security threats," he believes.
Betting on our own
The Russian software registry currently contains 72 entries related to operating systems, points out Dmitry Savitsky. That is, there is a wide choice, and developers continue to work actively in this direction.
Among the alternative solutions of domestic production, present on the Russian market, Alexander Cherny singles out Astra Linux, Alt and Red OS operating systems.
Despite this, Microsoft products still dominate the market with more than 86% share in desktop operating systems and 70 to 90% share in office software, depending on the segment of the economy, the expert notes.
Microsoft has no serious competitors today, agrees Denis Kuskov, general director of the TelecomDaily information and analytical agency. Nevertheless, due to the refusal from imported software, various software variants have appeared in Russia, such as P7-Office, MyOffice and LibreOffice.
- These solutions are actively used in the corporate environment, industrial sector and government agencies, providing a high level of security and compatibility with domestic equipment," emphasizes Sergey Kravtsov.
As an example, he cites the ROSA brand operating systems developed by the ROSA Scientific and Technical Center for Information Technologies.
In other words, it is possible to find domestic analogs of many Microsoft products in Russia, confirms Dmitry Sokolov, head of the information security service "MoyOffice".
- But they are often at an earlier stage of development and have limited functionality, as a result of which many familiar functions do not work," summarizes the expert.
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