Japan’s Fair Trade Commission (JFTC) raided Microsoft Japan’s Tokyo offices on February 25, 2026, investigating suspected violations of the Antimonopoly Law over restrictive Azure cloud practices.
Allegations Against Microsoft Azure Practices
Regulators suspect Microsoft unfairly blocks customers from running its software—like Windows OS and Microsoft 365 apps (Teams, Word)—on rival clouds such as AWS or Google Cloud Platform. Contracts allegedly impose high fees or technical barriers, hindering competition in Japan’s booming cloud market and favoring Azure dominance.
Microsoft confirmed full cooperation: “We are fully cooperating with the JFTC in their requests.” The probe examines licensing terms that tie software accessibility to Azure infrastructure.
Context of Japan’s Tech Monopoly Scrutiny
This mirrors recent JFTC actions: August 2025 cease-and-desist against Google for Android app store bundling, and 2024 Amazon Japan inspection over marketplace “buy box” pressures. Authorities aim to curb global giants’ ecosystem lock-in amid Japan’s digital transformation push.
Interviews and document analysis will follow; confirmed violations could lead to expanded probes and penalties.
Implications for Global Cloud Competition
The raid underscores rising antitrust heat on hyperscalers, challenging Microsoft’s multi-cloud licensing model post-Activision scrutiny. Japan seeks fair access in its $20B+ cloud sector growing 25% annually.
