Trump’s AI Proposal Calls for a More Lenient FTC Approach in Victory for Microsoft

The White House has put forward new guidelines that could ease pressure on Microsoft in an ongoing Federal Trade Commission (FTC) investigation focused on the company’s use of artificial intelligence. The rules encourage the FTC to be more cautious in its probes related to AI and to avoid actions that might slow down innovation in the field.

Released recently, the AI Action Plan lists several suggestions for federal agencies, asking the FTC to reconsider investigations started under the previous administration. It highlights the need to ensure that these inquiries don’t create unnecessary obstacles for AI development. The plan also advises reviewing existing FTC orders and agreements to identify any that could be unfairly holding back AI progress, with a call to modify or set aside such restrictions when appropriate.

Microsoft has faced a broad antitrust investigation by the FTC, which began under President Joe Biden and continued into the current administration. The probe has involved requests for detailed information about Microsoft’s AI operations, data centers, and software licensing. It also looks at Microsoft’s connection to OpenAI, questioning if their partnership might harm competition.

Experts say the new White House approach is likely to benefit Microsoft and other tech companies under scrutiny. John Lopatka, an antitrust professor, explains that the plan essentially signals the FTC not to block big tech firms from pursuing AI advancements through deals or partnerships.

The move also reflects the political changes within the FTC itself. In March, President Donald Trump dismissed the commission’s two Democratic members, leaving it under Republican control. Those ousted officials have challenged their removal in court, and the matter could eventually reach the Supreme Court.

Microsoft has not directly commented on the FTC’s role but praised the broader AI blueprint. Fred Humphries, the company’s top lobbyist, said the plan will help America prepare to build AI technologies and ready workers with the skills needed in a future shaped by AI.

Meanwhile, the FTC continues to handle other major cases against companies like Meta and Amazon. These firms argue that aggressive FTC actions might stifle AI innovation, despite their significant investments in the technology.

While the new guidelines ease some pressure, experts warn there’s still work to do. Yael Ossowski from the Consumer Choice Center points out that important questions remain about fair competition, data privacy, and whether the FTC favors certain companies over others in the rapidly evolving AI market.

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