The US Federal Trade Commission (FTC) has launched a wide-reaching antitrust investigation into Microsoft’s business practices, focusing on cloud computing, software licensing, and artificial intelligence. Allegations suggest the company has imposed restrictive licensing terms that make it difficult for customers to switch from its Azure cloud services to rival platforms. FTC Chair Lina Khan approved the probe ahead of her expected departure in January, raising questions about its future under a potentially business-friendlier administration.
Critics, including competitors and industry groups like NetChoice, claim Microsoft’s licensing policies unfairly lock customers into its ecosystem. Google has raised similar concerns with European regulators, citing significant mark-ups for using Windows Server on competing cloud services and delays in providing security updates. The FTC’s investigation also touches on broader competition concerns in AI and cybersecurity, including Microsoft’s acquisition of AI startup Inflection AI.
Microsoft has not commented on the probe, but complaints have mounted over its practices in cloud computing and the integration of AI tools into productivity products like Office and Outlook. Some industry observers note that Microsoft has been relatively spared in recent US antitrust actions targeting Big Tech firms, including Apple, Google, Meta, and Amazon. However, the FTC’s focus on Microsoft could signal a shift in regulatory priorities.
The outcome of the investigation remains uncertain, particularly with a potential change in the political landscape. While the Trump administration previously pursued aggressive antitrust enforcement, including actions against Google and Meta, Microsoft has benefited from its policies in the past, such as winning a contentious $10 billion Pentagon cloud contract over Amazon. Experts believe a new administration may alter enforcement priorities but not necessarily halt ongoing probes.
Google is appealing a court order mandating significant changes to its Play app store, arguing to the US 9th Circuit Court of Appeals that legal errors during the trial unfairly favoured Epic Games. The tech giant contends that the San Francisco jury should not have been allowed to rule on Epic’s claims and that the trial judge overstepped by issuing a nationwide injunction.
Epic, known for creating “Fortnite,” accused Google of monopolising app distribution and payment systems on Android devices. A jury sided with Epic last year, leading US District Judge James Donato to require Google to permit rival app stores on Android and allow competitors access to Play’s app catalogue. This injunction, set to last three years, is on hold pending the appeal.
Google warns the mandated changes would disrupt app developers and users, framing the judge’s order as excessive intervention. Epic, meanwhile, dismissed Google’s appeal as baseless and a refusal to honour the jury’s unanimous decision. The appeals court is set to hear arguments in February, with a decision expected later in 2025.
T-Mobile has reported recent attempts by cyber attackers to infiltrate its systems. The US telecom giant confirmed that its security measures successfully prevented access to sensitive customer data, including calls, voicemails, and texts. The intrusion originated from a compromised network connected to T-Mobile’s systems, prompting the company to sever the connection.
The attackers’ traits resembled those of Salt Typhoon, a Chinese-linked cyber espionage group, though T-Mobile has not confirmed their identity. The firm’s Chief Security Officer, Jeff Simon, stated that customer information remained secure, with no disruption to services. Findings were reported to the US government for further investigation.
Simon attended a White House meeting last week to discuss escalating cyber threats. The FBI and the Cybersecurity & Infrastructure Security Agency recently disclosed an ongoing investigation into a Chinese-linked espionage campaign targeting several US telecom providers.
The broader operation reportedly infiltrated multiple companies, stealing sensitive call data and accessing private communications. Such breaches compromised the devices of individuals in government and politics, including campaign staff during the 2020 US presidential election, raising concerns about national security.
Intel has secured a $7.86 billion subsidy from the US Commerce Department to bolster its domestic semiconductor production. The revised figure is lower than the $8.5 billion initially announced in March, following Intel’s receipt of a $3 billion Pentagon award. The funding will support key projects in Arizona, New Mexico, Ohio, and Oregon, advancing the nation’s chip-making capabilities.
Commerce Secretary Gina Raimondo highlighted the deal as a step towards revitalising US manufacturing. She emphasised the importance of having American-designed chips produced domestically, benefiting national security and economic growth. Intel will receive at least $1 billion of the subsidy by the year’s end, having met key project milestones.
The grant is part of a broader $52.7 billion initiative under the 2022 CHIPS Act, aimed at strengthening the US semiconductor industry. While Intel declined an $11 billion low-cost loan offered earlier, the company plans to leverage a 25% Treasury Investment Tax Credit for investments exceeding $100 billion. Intel CEO Pat Gelsinger noted bipartisan support for the sector’s growth, calling it vital for America’s future.
The award comes with strict conditions, including a five-year prohibition on stock buybacks and requirements to share excess profits. Raimondo reassured that these safeguards are designed to protect taxpayers, with additional awards expected in the coming weeks.
Chinese robotaxi firm Pony AI secured $260 million in a US IPO, valuing the startup at $4.55 billion. This marks a resurgence in US investor confidence for Chinese tech companies, with the IPO reflecting renewed interest in autonomous driving technologies despite ongoing geopolitical tensions.
The company’s move follows a period of uncertainty for Chinese firms in US markets, notably after Didi Global’s delisting. Regulatory disputes between China and the US have eased, bolstering opportunities for companies like Pony AI. However, the robotaxi sector faces challenges, including public concerns about autonomous vehicles’ safety, data privacy, and stiff competition from rivals such as Tesla, which plans to launch similar services in the US next year.
Pony AI sold 20 million American depositary shares at $13 each and raised an additional $153.4 million through private placements. Backed by Toyota, the company’s valuation has declined from $8.5 billion two years ago, highlighting the competitive and uncertain nature of the market. Analysts note widespread robotaxi adoption may take years due to safety and reliability hurdles.
The IPO follows a trend of other Chinese firms, including Zeekr and WeRide, also going public in the US. While Pony AI’s operations in the US remain limited, its public listing underscores growing investor interest in technology startups despite profitability challenges and intense market competition.
T-Mobile and SpaceX have secured Federal Communications Commission (FCC) approval to offer satellite-powered mobile coverage, targeting areas with little or no connectivity. This innovative partnership aims to eliminate mobile ‘dead zones’ by using satellites equipped with direct-to-cell technology to expand T-Mobile’s network.
The FCC’s decision is a first, allowing collaboration between a satellite operator and a wireless carrier to deliver telecommunications services via flexible-use spectrum bands originally reserved for terrestrial use. SpaceX launched the initial batch of satellites for this project in January 2023, marking a significant step forward in bridging coverage gaps.
Over 500,000 square miles in the US remain unreachable by traditional towers due to terrain and land-use constraints. The FCC introduced a new framework earlier this year to promote satellite use in extending 4G and 5G networks without compromising service quality. Chair Jessica Rosenworcel emphasised the agency’s commitment to fostering competition and innovation in the space economy.
Other firms have similar applications under review, but the T-Mobile-SpaceX initiative stands out as a promising solution for connecting underserved regions. Last month, the FCC permitted these satellites to assist disaster-stricken areas in North Carolina, further highlighting the technology’s potential.
South Korea announced plans to provide 14 trillion won ($10 billion) in low-interest loans next year to support its chip sector amid growing competition from China and uncertainty over US trade policies under President-elect Donald Trump. The funds, managed by state-run banks, will include 1.8 trillion won for infrastructure like power lines at a new high-tech chip complex in Yongin and Pyeongtaek, designed to attract advanced chipmakers.
The government highlighted challenges posed by rapid advancements in China’s semiconductor industry and potential changes to US policies like the Inflation Reduction Act and Chips Act, which could alter global trade incentives. Trump has also pledged new tariffs on goods from China, Mexico, and Canada, raising additional concerns for South Korean exporters.
While South Korea leads in memory chip manufacturing through giants like Samsung Electronics and SK Hynix, it faces setbacks in chip design and contract manufacturing, where rivals are gaining ground. The government vowed to use all available resources to help the industry overcome its current challenges and maintain global competitiveness.
Vietnam’s Prime Minister Pham Minh Chinh called on the United States to remove export restrictions on certain technologies during an event in Hanoi hosted by the American Chamber of Commerce. Chinh emphasised Vietnam’s interest in satellite communications development and revealed ongoing talks with SpaceX to boost aerospace cooperation. He also urged the US to recognise Vietnam as a market economy, a step that could lower trade tariffs.
The US currently restricts Vietnam’s access to technologies deemed critical to national security, though Vietnam is allowed to import conventional weapons and some advanced technologies. Chinh questioned the necessity of the embargo, stating, “We are not fighting anyone, so why do you keep the embargo?”
Despite potential US tariffs of up to 20% on imports under the next Trump administration, Chinh avoided addressing the issue directly. He instead highlighted Vietnam’s $25 billion in expected foreign investment this year and stressed the importance of maintaining strong US-Vietnam relations to tackle global challenges.
Samsung Electronics made significant leadership changes on Wednesday, aiming to strengthen its position in the competitive AI chip market. Semiconductor chief Jun Young-hyun was named co-CEO, gaining direct control of the struggling memory chip business, while US chip head Han Jin-man was promoted to lead the foundry division. The moves reflect Samsung’s strategy to address declining profits and regain its edge against rivals SK Hynix and Taiwan’s TSMC.
The reshuffle comes amid growing investor concerns over Samsung’s lagging performance in AI chip supply, particularly to key client Nvidia. Samsung’s semiconductor profits dropped sharply in the third quarter, attributed to delays with a major customer. Despite some progress since, analysts remain sceptical about the leadership structure, with Chung Hyun-ho retaining his influential role in the Business Support Task Force.
Chairman Jay Y. Lee acknowledged public and investor concerns during a hearing this week, emphasising the need to navigate business uncertainty and intensifying competition, particularly from Chinese chipmakers. Samsung hopes the leadership overhaul will drive innovation and stabilise its chip business in a rapidly evolving market.
Intel’s expected $8.5 billion subsidy for expanding its United States chip manufacturing facilities is likely to be reduced, sources revealed. The grants, part of a broader semiconductor funding initiative under the CHIPS and Science Act, will still represent a significant investment but may drop below $8 billion. The adjustment is reportedly linked to Intel’s separate $3 billion Pentagon contract funded through the same programme.
The US government aims to bolster domestic semiconductor production through the CHIPS Act, allocating $52.7 billion overall, including $39 billion in subsidies. Intel’s planned projects in Arizona include building two new chip factories and upgrading an existing facility. Despite these efforts, Intel faces industry challenges, with slumping share prices and restructuring moves under CEO Pat Gelsinger.
Other companies, such as TSMC and GlobalFoundries, have also benefited from preliminary CHIPS Act agreements. Intel’s revised funding agreement is expected soon, with the US Commerce Department declining to comment on the final subsidy figure.
