Japan Fair Trade Commission Raids Microsoft Japan Over Cloud Antitrust Concerns

JFTC Launches On-Site Inspection

The Japan Fair Trade Commission (JFTC) conducted an on-site inspection of Microsoft Japan Co.'s offices in Tokyo on Wednesday, February 25, 2026. The inspection is part of an ongoing investigation into suspected violations of the country's Antimonopoly Act. The JFTC is probing allegations that Microsoft Japan has engaged in practices that limit competition within the rapidly expanding cloud services market.

Allegations of Anti-Competitive Practices

At the heart of the inquiry are suspicions that Microsoft Japan is obstructing competitors' business dealings by unfairly favoring its own cloud platform, Azure. Authorities suspect the company may be configuring its widely used software offerings, including Microsoft 365 (which features applications such as Teams and Word) and Windows Server, in ways that make them either unavailable or difficult to operate on rival cloud infrastructures. Sources familiar with the matter indicate that Microsoft Japan is suspected of setting conditions that either make it difficult to use its software on non-Azure cloud platforms or result in higher fees for customers choosing alternative services like Amazon Web Services (AWS) or Google Cloud.

Microsoft's Response and Broader Regulatory Scrutiny

A spokesperson for Microsoft acknowledged the investigation, stating, 'We are fully cooperating with the JFTC (Japan Fair Trade Commission) in their requests.' This action by the JFTC reflects a broader push by Japanese regulators to address the market dominance of major global technology firms. In recent years, the JFTC has intensified its scrutiny of practices seen as potentially undermining fair competition in the digital marketplace. For instance, the commission issued a cease-and-desist order against Google in August for imposing binding requirements on smartphone manufacturers using its Android operating system. Additionally, Amazon Japan was inspected in 2024 over allegations of abusing its industry dominance through its 'buy box' placement.

Global Trend in Cloud Market Oversight

The investigation into Microsoft Japan is not an isolated incident but rather part of a growing global trend. Regulators in the United Kingdom, Europe, and the United States have also been examining Microsoft and other companies over their cloud computing practices. Last month, Brazil's antitrust authority initiated an administrative investigation into Microsoft's local unit concerning its cloud services. This marks the first raid on Microsoft's Japan operations since 1998, underscoring the increasing focus on ensuring fair competition in the rapidly expanding cloud market, which is predicted to double in Japan to 19 trillion yen by 2029.