Microsoft Japan Raided by Antitrust Watchdog for Allegedly Blocking Use of Its Software on Rival Cloud Platforms

The Yomiuri Shimbun

15:21 JST, February 26, 2026

The Japan Fair Trade Commission raided the headquarters of Microsoft Corp.’s Japanese unit Wednesday, on suspicion the company interfered with competitors’ businesses by preventing use of Microsoft software on rival cloud services.

Tokyo-based Microsoft Japan Co. is suspected of violating the Antimonopoly Law.

The JFTC will examine documents provided by Microsoft Japan and interviews conducted with company officials. The commission plans to also investigate the parent company, a U.S. tech giant, if it is found to have been involved in the alleged misconduct.

Cloud computing services allow users to store data and use software online. Since users do not have to purchase hardware, these services can help improve business efficiency and cut costs by eliminating the need to build and manage in-house systems. About 80% of Japanese companies use cloud services, according to a 2024 survey by the Internal Affairs and Communications Ministry.

Due to their convenience, cloud services have seen increasing use worldwide. The market has grown each year, sparking intense competition among major tech companies. U.S. giants Amazon.com Inc., Microsoft and Google LLC are dominant players in the field and together reportedly account for close to 70% of the global market.

Amazon, through Amazon Web Services, controls the largest share of the cloud services market globally, at about 30%. Microsoft’s cloud computing platform Azure is next, with a roughly 20% share. A similar pattern has emerged in the Japanese market, though in recent years Microsoft has reportedly been expanding its share compared to rivals.

According to sources, Microsoft Japan is suspected of not allowing the use of its products on personal computers and other devices through cloud services from other companies. That would have blocked access to the Windows operating software and the Microsoft 365 service for apps such as Word and Teams. When Microsoft Japan did allow use of these products, it is suspected of charging users high fees.

It is believed that Microsoft Japan attempted to acquire new customers, encourage users to switch to Azure and enlarge its market share by not allowing use of its popular Windows software and other products on rival companies’ cloud services.

The JFTC believes these practices could constitute “Interference with competitors’ transactions” and “dealing on restrictive terms,” which are prohibited by the Antimonopoly Law. It also believes this was intended to unfairly restrict competition in the cloud market and obstruct business at Amazon, Google and other companies.

Microsoft Japan said it will “fully cooperate” with any requests from the commission.