The Federal Trade Commission is preparing to launch an investigation into anti-competitive practices at Microsoft’s cloud computing business, as the US regulator continues to pursue Big Tech in the final weeks of Joe Biden’s presidency.

The probe would be the latest regulatory scrutiny against Big Tech from FTC Chair Lina Khan. Microsoft already faced a challenge from the FTC under Khan’s leadership targeting its acquisition of video game publisher Activision Blizzard, a $69 billion deal that was one of the largest in tech history.

The FTC is reportedly readying an investigation into whether Microsoft used anti-competitive tactics to maintain a dominant position in the cloud market.

This move follows the FTC’s legal challenge against Microsoft’s $75 billion acquisition of Activision Blizzard, which faced antitrust concerns around Microsoft’s cloud gaming business. While a federal court allowed the acquisition to proceed, the FTC’s appeal highlights its commitment to maintaining oversight of Big Tech’s market reach.

The U.S. Federal Trade Commission is preparing to launch an investigation into anti-competitive practices at Microsoft's cloud computing business, sources familiar with the matter told Reuters on Thursday.

The Federal Trade Commission (FTC) is set to launch an investigation into Microsoft's cloud computing business. First reported by the Financial Times, the FTC is looking into alleged anticompetitive practices surrounding Microsoft's licensing terms.

The agency’s antitrust investigation continues Biden administration scrutiny of Big Tech as the industry waits to discover what policies Donald Trump adopts.