![]() Ultimately, if antitrust scrutiny arises, it will not derail MSFT stock. Between continued success with its Azure, Office and Windows businesses, plus the potential with its move to expand its presence in gaming and the metaverse, it has a strong chance of delivering strong earnings growth in the years ahead. Instead of worrying about this, focus on the positives that far outweigh it. regulators, but, like I said, worst case scenario, it’s not likely to have a material impact on its future results. Not only has this not yet evolved into a repeat of its past brushes with E.U. Investors are correct in shrugging off antitrust risk as “no big deal” when it comes to Microsoft. Still, as this is a company that generates nearly $20 billion per quarter, a ten-figure fine will sting, but it won’t break the bank. That’s not to say a fine, if one arises, couldn’t be in the billions. Past fines were in the nine-digit range ($100 million to $1 billion). Worst case scenario, it may face another fine. Yet even if it loses in the courts, chances are it’s not going to have a serious impact. ![]() Again, that’s assuming what’s playing out now turns into another antitrust suit. Microsoft may be able to successfully defend itself against these claims. Furthermore, these large rivals also engage in the similar practices that are alleged to be anti-competitive. It’s not simply a case of this tech behemoth, versus a smattering of much smaller competitors. This time, there are several large names (i.e., Alphabet and Amazon) in the space. will be able to prove this is the product of anticompetitive trade practices.įor example, the circumstances are different than with past antitrust situations. However, that by-itself doesn’t mean that the E.U. Microsoft has done very well grabbing a large share of the European market for cloud services. Even if it does result in another antitrust suit, the end result will likely not have a material impact on MSFT stock. The E.U.’s investigation is only in the preliminary stages. However, before jumping to conclusions, keep a few things in mind. ![]() in particular, Microsoft has dealt with several bouts of antitrust scrutiny, some of which has resulted in it paying large regulatory fines. In the end, the software giant beat the case on appeal. Government took the company to court over allegations that it was engaging in monopolistic practices. You may remember how, twenty years back, the U.S. While the company hasn’t dealt with too many antitrust issues lately, it’s definitely no stranger to them. Specifically, the way it incentivizes prospective customers of its Azure cloud service by offering them deals on its suite of cloud-based applications like Office 365. MSFT Stock and Possible Antitrust ScrutinyĪs reported by the Financial Times on April 13, the aggressive tactics being employed by Microsoft to win the “cloud war” between it and its two key rivals, Alphabet (NASDAQ: GOOG,NASDAQ: GOOGL) and Amazon (NASDAQ: AMZN), could result in it ending up under scrutiny by European Union (EU) regulators, due to alleged anti-competitive practices.
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