Editing Microsoft (section)

===Controversies===
{{Main|Microsoft litigation|Criticism of Microsoft|}}

Criticism of Microsoft has followed various aspects of its products and business practices. Frequently criticized are the [[ease of use]], [[Robustness (computer science)|robustness]], and [[Computer security|security]] of the company's software. They have also been criticized for the use of [[permatemp]] employees (employees employed for years as "temporary", and therefore without medical benefits), the use of [[forced retention]] tactics, which means that employees would be sued if they tried to leave.<ref>{{cite web |title=Troubling Exits At Microsoft |url=http://www.businessweek.com/magazine/content/05_39/b3952001.htm |url-status=dead |archive-url=https://web.archive.org/web/20070502084953/http://www.businessweek.com/magazine/content/05_39/b3952001.htm |archive-date=May 2, 2007 |date= September 26, 2005 |first1=J |last1=Greene |first2=S |last2=Hamm |first3=D |last3=Brady |first4=M |last4=Der Hovanesian |website=BusinessWeek }}</ref> Historically, Microsoft has also been accused of overworking employees, in many cases, leading to [[Occupational burnout|burnout]] within just a few years of joining the company. The company is often referred to as a "Velvet Sweatshop", a term which originated in a 1989 ''[[Seattle Times]]'' article,<ref>{{cite news |last=Andrews |first=Paul |date=April 23, 1989 |title=A 'Velvet Sweatshop' or a High-Tech Heaven? |newspaper=The Seattle Times |url=http://www.krsaborio.net/research/1980s/89/890423.htm |url-status=dead |archive-url=https://archive.today/20120629191556/http://www.krsaborio.net/research/1980s/89/890423.htm |archive-date=June 29, 2012}}</ref> and later became used to describe the company by some of Microsoft's own employees.<ref>{{cite web |title=Editor's note, MSJ August 1997 |url=https://www.microsoft.com/msj/0897/ednote0897.aspx |url-status=dead |archive-url=https://web.archive.org/web/20070214061859/http://www.microsoft.com/msj/0897/ednote0897.aspx |archive-date=February 14, 2007 |access-date=September 27, 2005 |website=Microsoft}}</ref> This characterization is derived from the perception that Microsoft provides nearly everything for its employees in a convenient place, but in turn overworks them to a point where it would be bad for their (possibly long-term) health.

As reported by several news outlets,<ref>{{cite news |last1=Hancock |first1=Ciarán |title=Irish-registered subsidiary of Microsoft records $314bn profit |url=https://www.irishtimes.com/business/technology/irish-registered-subsidiary-of-microsoft-records-314bn-profit-1.4565525 |access-date=June 3, 2021 |newspaper=The Irish Times}}</ref><ref name="Neate">{{cite web |last1=Neate |first1=Rupert |title=Microsoft's Irish subsidiary paid zero corporation tax on £220bn profit |url=https://www.theguardian.com/world/2021/jun/03/microsoft-irish-subsidiary-paid-zero-corporate-tax-on-220bn-profit-last-year |access-date=June 3, 2021 |website=The Guardian|date=June 3, 2021 }}</ref> an Irish subsidiary of Microsoft based in the [[Republic of Ireland]] declared £220 bn in profits but paid no corporation tax for the year 2020. This is due to the company being tax resident in [[Bermuda]] as mentioned in the accounts for 'Microsoft Round Island One, a subsidiary that collects license fees from the use of Microsoft software worldwide. Dame [[Margaret Hodge]], a [[Labour Party (UK)|Labour]] [[Member of Parliament (United Kingdom)|MP]] in the UK said, "It is unsurprising – yet still shocking – that massively wealthy global corporations openly, unashamedly and blatantly refuse to pay tax on the profits they make in the countries where they undertake business".<ref name="Neate" />

In 2020, [[ProPublica]] reported that the company had diverted more than $39 billion in U.S. profits to Puerto Rico using a mechanism structured to make it seem as if the company was unprofitable on paper. As a result, the company paid a tax rate on those profits of "nearly 0%". When the [[Internal Revenue Service]] audited these transactions, ProPublica reported that Microsoft aggressively fought back, including successfully lobbying Congress to change the law to make it harder for the agency to conduct audits of large corporations.<ref>{{Cite web |last=Doctorow |first=Cory |date=January 22, 2020 |title=The sordid tale of Microsoft's epic tax evasion and the war they waged against the IRS |url=https://boingboing.net/2020/01/22/clippy-dodges-taxes.html |access-date=February 15, 2022 |website=Boing Boing |language=en-US}}</ref><ref>{{Cite web |last=Kiel |first=Paul |title=The IRS Decided to Get Tough Against Microsoft. Microsoft Got Tougher. |url=https://www.propublica.org/article/the-irs-decided-to-get-tough-against-microsoft-microsoft-got-tougher |access-date=February 15, 2022 |website=ProPublica |date=January 22, 2020 |language=en}}</ref> In 2023, Microsoft reported in a securities filing that the U.S. [[Internal Revenue Service]] was alleging that the company owed the U.S. $28.9 billion in past taxes, plus penalties related to mis-allocation of corporate profits over a decade.<ref>{{Cite web |date=2023-10-12 |title=The IRS says Microsoft may owe about $29 billion in back taxes. Microsoft disagrees |url=https://apnews.com/article/microsoft-taxes-irs-96eb66abe86de19f1108209a8d57431a |access-date=2024-04-08 |website=AP News |language=en}}</ref>

"Embrace, extend, and extinguish" (EEE),<ref name="DeadlyEmbrace">{{cite news|date=March 30, 2000|title=Deadly embrace|language=en|publisher=The Economist|url=https://www.economist.com/node/298112|url-status=live|archive-url=https://web.archive.org/web/20180523190053/https://www.economist.com/node/298112|archive-date=May 23, 2018}}</ref> also known as "embrace, extend, and exterminate,"<ref>{{cite web|title=Microsoft limits XML in Office 2003|url=http://news.zdnet.com/2100-3513_22-996528.html|archive-url=https://web.archive.org/web/20050922005808/http://news.zdnet.com/2100-3513_22-996528.html|archive-date=September 22, 2005|access-date=March 31, 2006}}</ref> is a phrase that the [[United States Department of Justice|U.S. Department of Justice]] found<ref>{{cite web|title=US Department of Justice Proposed Findings of Fact—Revised|url=http://www.usdoj.gov/atr/cases/f2600/v-a.pdf|access-date=April 28, 2016|website=Usdoj.gov|archive-url=https://web.archive.org/web/20000419213934/https://www.usdoj.gov/atr/cases/f2600/v-a.pdf|archive-date=April 19, 2000|url-status=live}}</ref> that was used internally by Microsoft<ref>{{cite web|title=US Department of Justice Proposed Findings of Fact|url=http://www.usdoj.gov/atr/cases/f2600/2613.htm|access-date=April 28, 2016|website=Usdoj.gov|date=August 14, 2015}}</ref> to describe its strategy for entering product categories involving widely used standards, extending those standards with [[Proprietary software|proprietary]] capabilities, and then using those differences to strongly disadvantage competitors. Microsoft is frequently accused of using anticompetitive tactics and abusing its monopolistic power. People who use their products and services often end up becoming dependent on them, a process is known as [[vendor lock-in]].

Microsoft was the first company to participate in [[PRISM (surveillance program)|the PRISM surveillance program]], according to leaked NSA documents obtained by ''The Guardian''<ref>{{cite news |last=Greenwald |first=Glenn |author-link=Glenn Greenwald |date=June 6, 2013 |title=NSA taps in to internet giants' systems to mine user data, secret files reveal |work=The Guardian |location=London |url=https://www.theguardian.com/world/2013/jun/06/us-tech-giants-nsa-data |url-status=live |access-date=June 6, 2013 |archive-url=https://web.archive.org/web/20060818114650/http://www.guardian.co.uk/world/2013/jun/06/us-tech-giants-nsa-data |archive-date=August 18, 2006}}</ref> and ''The Washington Post''<ref>{{cite news |last1=Gellman |first1=Barton |last2=Poitras |first2=Laura |date=June 6, 2013 |title=U.S. intelligence mining data from nine U.S. Internet companies in broad secret program |newspaper=The Washington Post |url=https://www.washingtonpost.com/investigations/us-intelligence-mining-data-from-nine-us-internet-companies-in-broad-secret-program/2013/06/06/3a0c0da8-cebf-11e2-8845-d970ccb04497_story.html?hpid=z1 |url-status=live |access-date=June 6, 2013 |archive-url=https://archive.today/20130615061900/http://www.washingtonpost.com/investigations/us-intelligence-mining-data-from-nine-us-internet-companies-in-broad-secret-program/2013/06/06/3a0c0da8-cebf-11e2-8845-d970ccb04497_story.html?hpid=z1 |archive-date=June 15, 2013}}</ref> in June 2013, and acknowledged by government officials following the leak.<ref>{{cite news |last1=Savage |first1=Charlie |last2=Wyatt |first2=Edward |last3=Baker |first3=Peter |date=June 6, 2013 |title=U.S. says it gathers online data abroad |newspaper=The New York Times |url=https://www.nytimes.com/2013/06/07/us/nsa-verizon-calls.html |url-status=live |access-date=February 18, 2017 |archive-url=https://web.archive.org/web/20170216072437/http://www.nytimes.com/2013/06/07/us/nsa-verizon-calls.html |archive-date=February 16, 2017}}</ref> The program authorizes the government to secretly access data of non-US citizens hosted by American companies without a warrant. Microsoft has denied participation in such a program.<ref>{{cite web |date=June 6, 2013 |title=Google, Facebook, Dropbox, Yahoo, Microsoft And Apple Deny Participation In NSA PRISM Surveillance Program |url=https://techcrunch.com/2013/06/06/google-facebook-apple-deny-participation-in-nsa-prism-program/ |url-status=live |archive-url=https://web.archive.org/web/20130613004834/http://techcrunch.com/2013/06/06/google-facebook-apple-deny-participation-in-nsa-prism-program/ |archive-date=June 13, 2013 |access-date=June 6, 2013 |work=Tech Crunch}}</ref>

[[Jesse Jackson]] believes Microsoft should hire more [[minorities]] and women. In 2015, he praised Microsoft for appointing two women to its board of directors.<ref>{{cite web |last=Gross |first=Ashley |title=Rev. Jesse Jackson Praises Microsoft's Diversity Efforts, But Urges The Company To Do More |url=http://www.kplu.org/post/rev-jesse-jackson-praises-microsofts-diversity-efforts-urges-company-do-more |url-status=dead |archive-url=https://web.archive.org/web/20151208082033/http://www.kplu.org/post/rev-jesse-jackson-praises-microsofts-diversity-efforts-urges-company-do-more |archive-date=December 8, 2015 |access-date=December 3, 2015}}</ref>

In 2020, [[Salesforce]], the manufacturer of the [[Slack (software)|Slack]] platform, complained to European regulators about Microsoft due to the integration of the Teams service into Office 365. Negotiations with the European Commission continued until the summer of 2023, but, as it became known to the media, they reached an impasse. Microsoft is now facing an antitrust investigation.<ref>{{Cite web|url=https://www.reuters.com/technology/eu-investigation-into-microsoft-likely-after-remedies-fall-short-sources-say-2023-07-03/|title=Exclusive: Microsoft faces EU antitrust probe after remedies fall short, sources say|date=July 4, 2023|website=[[Reuters]]}}</ref>

In June 2024, Microsoft Corp. faced a potential EU fine after regulators accused it of abusing market power by bundling its Teams video-conferencing app with its Office 365 and Microsoft 365 software. The European Commission issued a statement of objections, alleging Microsoft's practice since 2019 gave Teams an unfair market advantage and limited interoperability with competing software. Despite Microsoft's efforts to avoid deeper scrutiny, including unbundling Teams, regulators remained unconvinced. This action followed a 2019 complaint from Slack, which was later acquired by Salesforce. Microsoft's Teams usage soared during the pandemic, growing from 2 million daily users in 2017 to 300 million in 2023. The company has a history of antitrust battles in the U.S. and Europe, with over €2 billion in EU fines previously imposed for similar abuses.<ref>{{cite news|last=Stolton |first=Samuel |title=Microsoft Risks EU Fine After Antitrust Warning Over Teams App |date=25 June 2024 |url=https://www.bnnbloomberg.ca/microsoft-risks-eu-fine-after-antitrust-warning-over-teams-app-1.2089126 |access-date=25 June 2024}}</ref>

In October 2024, Microsoft fired two employees, software engineers Ibtihal Aboussad and Vaniya Agrawal,<ref>"Microsoft AI CEO Mustafa Suleyman was interrupted by shouts from software engineer Ibtihal Aboussad during his speech at the Friday celebration while Vaniya Agrawal, another engineer, interjected during a question-and-answer session with Microsoft founder Bill Gates, CEO Satya Nadella and former CEO Steve Ballmer." - [https://thehill.com/business/5238939-microsoft-fires-employees-israel-gaza-war-protest/] (Ashleigh Fields)</ref> who organized an unauthorized vigil at its Redmond headquarters to honor Palestinians killed in the [[Gaza war]]. The employees, part of the group "No Azure for Apartheid," sought to address the company's involvement in the Israeli government's use of its technology.<ref>{{cite news|last=O’BRIEN  |first=MATT |title=Microsoft fires employees who organized vigil for Palestinians killed in Gaza |date=25 October 2024 |url=https://apnews.com/article/microsoft-fired-workers-israel-palestinians-gaza-72de6fe1f35db9398e3b6785203c6bbf |website=AP News |access-date=27 October 2024}}</ref> On 20 March 2025, before an event at Seattle's Great Hall with Brad Smith and Steve Ballmer, protestors projected "Microsoft powers [[Gaza genocide|genocide]]" on the wall. Subsequently, two employees interrupted AI executive Mustafa Suleyman at a speaking event on 4 April 2025 in protest at the company's support of Israel.<ref>{{cite web |last1=Pratt |first1=Timothy |title=Microsoft faces growing unrest over role in Israel's war on Gaza: 'Close to a tipping point' |url=https://www.theguardian.com/technology/2025/apr/18/microsoft-ai-israel-gaza-war |website=The Guardian |access-date=18 April 2025 |date=18 April 2025}}</ref> The [[Boycott, Divestment and Sanctions]] movement added Microsoft to its list of targets for partnering "with the apartheid regime of Israel and its prison system".<ref>{{Cite web|url=https://www.polygon.com/news/554879/bds-palestine-israel-xbox-microsoft-boycott-candy-crush-minecraft-call-of-duty|title=Palestinian-led BDS movement adds Microsoft's Xbox as priority boycott target|date=8 April 2025|access-date=18 April 2025|website=Polygon|last=Walker|first=Ian}}</ref>

In November 2024, the Federal Trade Commission (FTC) launched an investigation into Microsoft, focusing on potential antitrust violations related to its cloud computing, AI, and cybersecurity businesses. The probe scrutinized Microsoft's bundling of cloud services with products like Office and security tools, as well as its growing AI presence through its partnership with OpenAI. This inquiry is part of broader efforts by the U.S. government to curb the power of major tech companies, especially under FTC chair Lina Khan. Concerns were raised about Microsoft's licensing practices potentially locking customers into its services and its AI investments possibly sidestepping regulatory oversight.<ref>{{cite news|last=McCabe |first=David |title=F.T.C. Launches Antitrust Investigation Into Microsoft |date=27 November 2024 |url=https://www.nytimes.com/2024/11/27/technology/microsoft-ftc-antitrust.html |website=NY Times |access-date=1 December 2024}}</ref>