Regulatory Scrutiny on Microsoft Cloud and AI

FTC escalates probe into cloud bundling and AI tying, now specifically targeting Entra ID and Copilot bundling; UK CMA launches SMS probe into software/cloud licensing; EU investigates AWS/Azure under DMA. These pose material risks to Azure and M365 growth. A new analysis reveals a clash between the EU Data Act and DMA, with Azure designated as a gatekeeper under the DMA, creating regulatory uncertainty and potential compliance costs for Azure's EU operations. A securities class action was filed today alleging misleading statements on Copilot and AI, adding a minor legal overhang.