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 investigation forms part of the Biden administration's broader campaign to reign in the anti-competitive practices of large technology firms. Microsoft has remained silent, but the result could have a major strategic impact on its structure and the firm's place in the cloud economy.