Tokyo – Japan’s Fair Trade Commission (JFTC) conducted a raid on the Tokyo offices of Microsoft Japan on Wednesday, February 25, 2026, as part of an investigation into potential antitrust violations. The probe centers on concerns that Microsoft is unfairly restricting customers of its Azure cloud platform from utilizing competing cloud services, according to sources familiar with the matter.
The investigation marks a significant escalation in scrutiny of Microsoft’s cloud computing practices, mirroring similar examinations underway in other major markets including the United Kingdom, Europe, and the United States. Brazil’s antitrust body also recently launched an investigation into Microsoft’s cloud services in that country, signaling a global trend of increased regulatory oversight of the tech giant’s dominance in the cloud sector. The core of the JFTC’s inquiry focuses on whether Microsoft is leveraging its market position to stifle competition within the rapidly growing cloud infrastructure market.
Concerns Over Microsoft 365 Compatibility
The JFTC is reportedly investigating whether Microsoft is making its popular software services, including Microsoft 365 – encompassing applications like Teams and Word – inaccessible when used on cloud servers other than its own Azure platform. This practice, if confirmed, could effectively lock customers into the Microsoft ecosystem and limit their choices, hindering competition. According to local media reports, including the Yomiuri Shimbun, the JFTC suspects Microsoft of setting conditions that effectively shut out rival cloud providers.
A source with direct knowledge of the investigation, who requested anonymity due to the sensitivity of the matter, told Reuters that the JFTC is also seeking clarification from Microsoft’s parent company in the United States. Microsoft Japan has stated it is “fully cooperating with the JFTC in their requests,” according to a company spokesperson. The raid involved on-site inspections at Microsoft Japan’s headquarters in Tokyo, as confirmed by multiple sources, including CNBC and The Japan Times.
Broader Trend of Antitrust Scrutiny in Japan
This investigation into Microsoft Japan is part of a broader effort by Japanese authorities to curb the monopolistic practices of global technology companies. In August 2024, the JFTC issued a cease-and-desist order to Google for imposing binding conditions on Android smartphone manufacturers in Japan, ensuring its online app store was almost automatically installed. Similarly, in 2024, Amazon’s Japanese subsidiary was inspected over allegations of abusing its market dominance to drive down prices through its “buy box” feature, pressuring sellers to lower prices to gain a competitive edge, as reported by The Japan Times.
The JFTC’s actions reflect a growing international concern over the power of large tech firms and their potential to stifle innovation and limit consumer choice. The investigation into Microsoft Japan’s cloud practices is particularly noteworthy given the increasing reliance of businesses on cloud computing services and the strategic importance of the cloud market.
What to Watch Next
The JFTC’s investigation is ongoing, and it remains to be seen whether the agency will find sufficient evidence to bring formal charges against Microsoft Japan. The outcome of this case could have significant implications for the future of cloud computing competition in Japan and potentially influence regulatory approaches in other countries. Further developments are expected in the coming months as the JFTC continues its investigation and gathers evidence. The agency’s findings will be closely watched by industry observers and competitors alike.
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