Japan's Fair Trade Commission (JFTC) raided Microsoft Japan on Wednesday as part of a growing investigation into whether the company restricted clients of its Azure cloud platform from using rival services, a source with direct knowledge told Reuters.
The source, who requested anonymity because the matter is not public, said regulators are also seeking information from Microsoft's parent company in the United States.
The probe focuses on allegations that Microsoft limited access to popular services, such as Microsoft 365 apps—including Teams and Word—on other cloud platforms, effectively favoring its own Azure service.
According to CNBC, a spokesperson for Microsoft Japan said the company is "fully cooperating with the JFTC in their requests," but declined to comment further.
The US Federal Trade Commission also declined to comment on the investigation.
This Japanese action adds to a wave of antitrust scrutiny facing Microsoft worldwide.
Regulators in Britain, Europe, and the United States have separately examined the company's cloud computing practices.
Last month, Brazil's antitrust agency opened an administrative investigation into Microsoft's local unit regarding similar concerns.
Microsoft Japan raided over suspected violation of anti-monopoly law: Reuters https://t.co/3ybwN8MzQs
— CNBC International (@CNBCi) February 25, 2026
Japan Steps Up Action Against Monopoly
The JFTC has previously taken action against other global tech giants. In August, the commission issued a cease-and-desist order to Google for imposing restrictive conditions on Android smartphone manufacturers in Japan, forcing its app store to be pre-installed.
Similarly, Amazon Japan was inspected in 2024 for allegedly using its "buy box" feature to pressure sellers into lowering prices, giving the company an unfair advantage over rival e-commerce platforms.
Local media, including the "Yomiuri Shimbun," highlighted that Japan has stepped up efforts in recent years to rein in monopolistic behavior by major tech companies, JapanTimes reported.
The investigation into Microsoft mirrors these earlier attempts to ensure fair competition in the Japanese market.
Industry experts say the JFTC's scrutiny reflects a broader global push to regulate dominant tech companies, especially in cloud computing, where a few major players control critical infrastructure used by millions of businesses worldwide.
"The market for cloud services is growing fast, and regulators want to make sure no company can unfairly lock in customers," said one analyst familiar with the sector.
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