Microsoft Corp. stands to gain from new White House AI guidelines that call on the US Federal Trade Commission to show more restraint in probes involving artificial intelligence and stand down on cases that put “AI innovation” at risk.
The AI Action Plan, which was released earlier Wednesday and includes dozens of recommendations for federal agencies, urges the FTC to review “investigations commenced under the previous administration to ensure that they do not advance theories of liability that unduly burden AI innovation.”
“Furthermore, review all FTC final orders, consent decrees, and injunctions, and, where appropriate, seek to modify or set-aside any that unduly burden AI innovation,” according to the 23-page blueprint, which was commissioned by President Donald Trump in January.
Since Trump took office, the FTC has moved forward with a sprawling antitrust probe of Microsoft that started under the Biden administration. That investigation has highlighted FTC Chair Andrew Ferguson’s commitment to continue cracking down on the biggest tech companies, a priority shared by President Joe Biden’s FTC Chair Lina Khan.
Microsoft Inquiry
Under Ferguson, the FTC requested reams of documents from Microsoft about the company’s AI operations, including its data centers and software licensing practices, Bloomberg News previously reported. The inquiry also touches on Microsoft’s relationship with OpenAI and whether those ties harm competitors.
Chair of the FTC Andrew Ferguson
The blueprint’s recommendation that the FTC show more restraint on AI is “bound to benefit Microsoft in the FTC’s current investigation and other tech platforms as well,” according to John Lopatka, an antitrust professor at Penn State University.
“The ‘Action Plan’ can be understood as telling the FTC not to prevent the tech platforms from embracing AI through mergers or alliances that would fuel the development of the technology,” Lopatka said. He added the FTC’s interpretation will come down to how it defines “unduly” burdening AI innovation.
Republican Control
The White House AI guidelines pose another potential test of the independence of the FTC, where Trump has sought to exert more sway. In March, the president fired the FTC’s two Democratic commissioners, leaving it solely in Republican control. The commission’s ousted members have sued to block their dismissals, and the administration has vowed to take the case to the Supreme Court.
Microsoft declined to comment on the FTC provision, though it lauded the AI blueprint more broadly. “AI is a powerful tool but will only help America prosper if we’re ready for it,” said Microsoft’s top lobbyist Fred Humphries in a statement. “President Trump’s plan will accelerate infrastructure readiness so AI can be built and used here, and help students and workers with skills needed to win in an AI-powered global economy.”
The FTC declined to comment.
Ferguson’s FTC has also inherited other cases against big tech companies from Khan, including lawsuits against Meta Platforms Inc. and Amazon.com Inc. The companies have argued the FTC’s actions could hinder AI innovation, given they invest more in the nascent technology than most companies in the world.
Toward the end of the Biden administration, Khan’s FTC also sent inquiries to Amazon, Microsoft and Alphabet Inc. focused on their investments and partnerships with AI startups Anthropic and OpenAI.
“This will undoubtedly be helpful for Microsoft and other AI innovators, but it’s not a blank check,” said Yael Ossowski, deputy director at the Consumer Choice Center. “There are still important competition questions to consider on whether consumer welfare is respected in bundling for cloud computing, respect for data privacy, and whether certain rules or requirements unlawfully favor one specific AI company over another.”
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