Japan's Fair Trade Commission (FTC) conducted a raid on Wednesday at the Tokyo offices of Microsoft Japan. This action is part of an investigation into whether the corporation violated antitrust law by restricting customers of its Azure platform from using services of competing cloud providers. According to reports, officials suspect that Microsoft may have prevented its software from running on platforms other than Azure. The Redmond-based company has not commented on the matter, and the Japanese regulator has declined to comment.
Raid at Tokyo headquarters
Officials from Japan's Fair Trade Commission entered the Tokyo offices of Microsoft Japan on Wednesday, conducting a search as part of a formal investigation. This action is a step in antitrust proceedings that could lead to the imposition of sanctions.
Suspicion of restrictive practices
The main subject of the investigation is the suspicion that Microsoft, through its Azure platform, unfairly restricted customers, preventing them from using services of competing cloud computing providers. This may have involved blocking its own software from running on other platforms.
Battle of giants in the Japanese market
Japan is a key market for global cloud providers such as Microsoft Azure, Amazon AWS, and Google Cloud. These companies invest significant resources there, vying for contracts with large conglomerates and banks. The FTC investigation could affect Microsoft's competitive position in this region.
No comment from the parties
The Japanese antitrust authority and representatives of Microsoft Japan have declined to comment on the ongoing proceedings and the conducted raid. The information comes from unofficial sources familiar with the matter and from media reports, including Nikkei.
On Wednesday, February 25, 2026, Japanese regulatory authorities entered the Tokyo offices of Microsoft Japan, conducting a raid as part of an antitrust investigation. This action, confirmed by unofficial sources and media reports, represents an escalation of the probe being conducted by Japan's Fair Trade Commission (FTC). The subject of the proceedings is the suspicion that the American tech giant violated competition law by employing restrictive practices against users of its flagship cloud platform, Azure. According to information from Bloomberg, the regulator is investigating whether Microsoft unfairly hindered customers from using services of competing providers, potentially by preventing its own software from running on platforms other than Azure. Such practices, if proven, could constitute an abuse of a dominant market position and limit consumer choice. Japan, as the world's third-largest economy, has long been an arena of intense competition among global tech giants. Japan's Fair Trade Commission, modeled on the U.S. Federal Trade Commission, actively monitors the market for monopolistic practices, especially in rapidly developing sectors such as cloud technology and artificial intelligence. 3 — major U.S. players compete in the Japanese cloud market The raid conducted by the FTC reflects a global trend of tightening oversight over dominant digital platforms. Microsoft, Amazon, and Google (Alphabet) are waging a costly battle for corporate customers worldwide, and the Japanese market, with its large conglomerates (so-called keiretsu) and banking sector, is a priority for them. All three companies have significantly increased their investments there in infrastructure and personnel. The Japanese regulator's investigation could therefore have implications not only for Microsoft's position but also for the shape of the entire local competition in the cloud sector. So far, neither the authority nor Microsoft Japan have issued an official statement on the matter. The information is based on media reports, including coverage by the Nikkei newspaper, and on anonymous sources, which is typical for the early stages of regulatory proceedings.
Mentioned People
- Mariko Katsumura — Reuters journalist, author of the report
- Chang-Ran Kim — Reuters editor