Microsoft is accused of creating a monopoly on US government systems through free upgrades
- Microsoft has given the US government $150 million in cybersecurity tools
- The deal included the expensive Microsoft 365 Government G5
- Consultants accused of increasing dependence on Microsoft
As Microsoft battles scrutiny from European antitrust regulators, the company is also facing investigations into alleged business practices in the US.
It has been suggested that Microsoft offered one of its most important customers, the US government, free services to keep it as a customer and weed out the competition.
A ProPublica report found that the company committed $150 million in cybersecurity services to the federal government during a 2021 White House summit led by President Joe Biden. Rumor has it it’s known internally as the ‘White House Offer’. Microsoft’s pledge would see federal agencies gain access to the Microsoft 365 Government G5 security suite, which includes security, compliance and collaboration features. G5 costs about 60% more than G3.
Microsoft is accused of monopolizing US government contracts
In addition, Microsoft consultants who worked within government agencies to help implement the company’s tools reportedly created a dependency on its services, effectively making it more difficult for the U.S. government to switch providers.
The White House offer also benefited Microsoft beyond the cybersecurity space. By boosting adoption of its Azure cloud platform, Microsoft could intensify competition with Amazon Web Services, which accounts for the largest share of the cloud pie.
Steve Faehl, Microsoft’s Federal Security CTO, stated that the company’s “sole purpose during this period was to support an urgent government request to improve the security posture of federal agencies, which have been continually targeted by advanced national threat actors.”
A White House spokesman tried to distance the administration from Microsoft’s behavior: “This was a voluntary commitment by Microsoft… and Microsoft alone was responsible for it.”
