Microsoft Japan offices searched in antitrust probe over cloud practices

Summary

Japan’s antitrust regulator has conducted a search of Microsoft Japan offices as part of an investigation into whether the company’s cloud practices may restrict competition, highlighting intensifying global scrutiny of major cloud providers.

TOKYO, Feb. 25, 2026 — Japan’s Japan Fair Trade Commission has searched the local offices of Microsoft as part of an investigation into suspected violations of the country’s anti-monopoly laws, according to a person familiar with the matter.

The probe is focused on the company’s cloud business, including whether conditions tied to its Microsoft Azure platform may have limited customers’ ability to use competing services.

Focus on cloud licensing and interoperability

Authorities are examining whether contractual terms or technical restrictions could have made it more difficult for companies to run certain software on rival cloud platforms.

Investigations of this nature typically assess whether pricing structures, licensing rules, or product integration practices create barriers to competition.

The regulator declined to comment on specifics, and Microsoft said it is cooperating with authorities.

Part of broader global scrutiny

The inquiry comes as competition regulators worldwide increase oversight of cloud computing markets, where a small number of providers dominate infrastructure services.

Authorities in several jurisdictions are assessing whether market concentration could limit customer choice or hinder smaller competitors.

What happens next

Antitrust investigations can take months or years to conclude. Outcomes may range from closing the case with no action to imposing remedies or penalties if violations are found.

The search does not imply wrongdoing and represents an early step in the investigative process.

Why this matters

Cloud computing has become foundational to digital economies, powering everything from enterprise software to artificial intelligence workloads.

Regulatory scrutiny of major providers could influence pricing, interoperability standards, and competition dynamics across the global technology sector.

FAQs

Q1. Why did regulators search Microsoft’s offices?

To gather information as part of an investigation into potential anti-competitive practices related to its cloud business.

Q2. What is Azure?

Microsoft’s cloud computing platform that provides infrastructure, storage, and software services.

Q3. Does the search mean Microsoft broke the law?

No. It is an investigative step and does not imply a violation has occurred.

Q4. Are other cloud companies being investigated globally?

Yes. Regulators in multiple regions are examining competition in cloud markets.

Q5. What could be the outcome?

Possible outcomes include no action, negotiated remedies, or fines if authorities determine rules were breached.