Tag: microsoft

Britain Wants To Punish Microsoft for Being Too Successful

Successful tech companies are being punished—for being successful.

Last week, Britain’s Competition and Markets Authority (CMA) proposed designating Microsoft as having strategic market status, which would give the government regulator enormous powers to regulate Microsoft and impose specific conduct requirements on product design. A consultation process has begun, with a decision on whether Microsoft will be given strategic market status expected in February 2027.

If the CMA decides to designate Microsoft as having strategic market status, it could intervene in product bundling (how Microsoft packages Teams, Word, Excel, and Copilot together), interoperability (whether Microsoft should make it easier for competing software and AI developers to integrate with its products), cloud licensing (whether Microsoft’s licensing arrangements disadvantage rival cloud providers), and customer switching (whether businesses face unreasonable barriers to leaving Microsoft’s ecosystem) in the United Kingdom.

Bizarrely, the CMA’s fundamental gripe with Microsoft is that it has made its software so interconnected, convenient, and commercially attractive to buy together that competitors struggle to persuade businesses to use anything else. For example, the CMA says that Microsoft offers customers “technology that is useful, secure, easy to deploy and manage, and available at an attractive overall price.” According to its own customer research, Microsoft is seen as “relatively good value for money,” and its bundles are “seen as more cost-effective than buying and managing separate licences.” Because commercial bundling “makes customers less likely to adopt products from alternative providers,” the CMA thinks it must intervene.

Microsoft is not the first tech giant to feel the CMA’s wrath for creating products people like. In 2025, the CMA decided Google had strategic market status in general search and search advertising, giving the regulator the power to impose legally binding requirements on how the company operates. Since then, the CMA has ordered Google to use government-mandated standards for ranking organic search results, provide competitors with tools to access users’ search data, and give publishers greater control over how their content is used in AI-powered search. (These requirements were imposed without finding that Google had violated competition law.)

“Products working well together at an attractive price used to be called a selling point,” but is now “attracting intervention pushed by an overzealous regulator,” Matthew Lesh, public policy fellow at the Institute of Economic Affairs, a London-based free market think tank, tells Reason. Lesh is the co-author of Digital Overload, a 2023 report that warns against giving the CMA “extensive, discretionary powers” amounting to the regulator “telling some of the most successful and popular platforms on the planet how to run their businesses.”

Lesh argues that including Copilot, Microsoft’s AI chatbot, in the designation is “particularly outrageous.” Last year, when Google was designated as having strategic market status, the CMA excluded Gemini because the “AI assistant sector is relatively small, nascent, and highly dynamic.” Lesh argues that, with Google, the CMA acknowledged “uncertainty about the market’s development,” but now “proposes sweeping Microsoft’s workplace AI into a designation requiring an assessment looking at least five years ahead.”

“Five years ago, ChatGPT didn’t exist. Anyone confident about who will lead workplace AI in 2031 should be running a hedge fund, not a regulator,” he tells Reason.

While European countries have taken a far more interventionist approach to technology, the United States has, at least comparatively, celebrated competition and innovation. But American lawmakers are increasingly flirting with importing similar restrictions on Big Tech.

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Feds spent $4.8 million on unused Microsoft licences, with more costs undisclosed

Federal departments purchased more than 53,000 Microsoft licences and subscriptions that went unused, costing taxpayers at least $4.8 million, according to government records reviewed by the Canadian Taxpayers Federation.

The actual bill remains unclear because departments did not disclose costs for nearly 20,000 of those unused subscriptions.

The findings come from a government response to an order paper question submitted by MP Adam Chambers, who requested details about Microsoft licences purchased over the previous year and how many remained unused.

“I understand forgetting about a few trial subscriptions, but how do these bureaucrats forget about 50,000 subscriptions?” said CTF federal director Franco Terrazzano.

Departments reported spending $4.8 million on 33,213 unused licences and subscriptions. Another 19,860 went unused without their costs being disclosed, according to the CTF.

Statistics Canada reported the largest disclosed spending total: nearly $1.2 million for 2,608 unused subscriptions.

That included $1,746 for 25 Teams Phone Standard subscriptions purchased for a pilot project. None were used. Asked why, an agency spokesperson told the CTF: “Technical challenges were encountered.”

Agriculture and Agri-Food Canada reported the highest number of unused licences, with 7,443 costing taxpayers $138,500.

Employment and Social Development Canada spent $68,940 on 150 Microsoft Teams Rooms Pro subscriptions without using any. The department did not respond to the CTF’s request for an explanation.

The Canada Revenue Agency reported 4,588 unused subscriptions but withheld their cost. It also did not respond to the federation’s questions.

Other disclosures left significant gaps. National Defence did not identify the subscription types it purchased, while Transport Canada did not disclose how many licences were unused.

Shared Services Canada reported spending approximately $27 million on Microsoft subscriptions without disclosing how many it purchased or used. That spending was not identified as entirely unused.

“Taxpayers are paying for all these subscriptions so departments need to be fully transparent and show taxpayers the bill,” Terrazzano said.

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Microsoft Claims a Quantum Breakthrough That Physicists Still Debate As DARPA Tests It

Microsoft says it has made one of quantum computing’s hardest problems dramatically easier.

Some physicists aren’t convinced.

Now DARPA gets to put its hands on the hardware.

Microsoft announced Tuesday that the Defense Advanced Research Projects Agency will receive direct, on-site access to its latest quantum system at a new Maryland research center. The arrangement gives government evaluators something far more useful than another presentation about Microsoft’s roadmap. They can examine and test the technology itself.

The machine centers on Microsoft’s Majorana 2 technology. Microsoft says its newest topological qubits are more than 1,000 times more reliable than the previous generation. Their average lifetime is about 20 seconds, with some lasting more than a minute. The company says those advances have allowed it to cut its timetable in half and target a scalable quantum computer by 2029.

From Microsoft:

To create Majorana 2, the Microsoft Quantum team improved Majorana 1’s material stack to create a more stable topological phase. Majorana 2 replaces Majorana 1’s superconductor, aluminum, with lead, and also updates the semiconductor active region to a combination of indium arsenide and indium arsenide antimonide. This change in materials results in significant increases in performance, which are reflected in the improved robustness of the topological phase. The topological gap, which protects the topological qubits from environmental noise and errors, is more than double that of the previous quantum processor.

The gate-defined devices in our quantum processors are composed of tetrons, a type of topological qubit consisting of two superconducting nanowires with Majorana Zero Modes (MZMs) at their ends. MZMs are the building blocks of topological qubits, storing quantum information through parity, the evenness or oddness of the number of electrons in a topoconductor wire.

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Microsoft commits to sweeping AI privacy rules for students. Will other tech giants follow?

Millions of students every day turn to AI chatbots for help with schoolwork, emotional support and personal advice — often unaware of where their conversations and other personal information end up.

How that data is used — and schools’ role in protecting it — is a growing concern for educators, parents and kids as artificial intelligence becomes a ubiquitous part of the school day, embedded in many of the classroom tools students are required to use.

As the school year started, the country’s two largest school districts, New York City and Los Angeles, announced they were putting the brakes on student use of AI for one year, as they study how to best incorporate the technology into education.

In response to a growing AI and screentime backlash, Microsoft announced last week it had agreed to adopt guardrails and privacy standards for its AI in schools, as negotiated with the American Federation of Teachers, the country’s second-largest teachers union.

The safety provisions in the agreement are meaningful, but the standards will only be effective if all AI companies, especially the tech giants, sign on, said Josh Golin, executive director of online safety nonprofit Fairplay. He said the agreement sidesteps the question of whether AI products even belong in classrooms, or at what age they should be introduced.

“I worry that a high-profile framework like this will be misunderstood and schools will think, ‘If they’re doing a good job on data privacy and safety, then that means we should be using the tool,’” Golin said.

The AFT said the agreement, which is legally binding and requires third-party audits for compliance, could set an industry standard. Two other leading AI companies, OpenAI and Anthropic, said they also were discussing safety and privacy pacts with the AFT. But Google, the dominant provider of education technology for America’s schools, has not said whether it plans to offer similar protections.

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Microsoft Brings “Age Verification” System To Windows

Just in time for the global digital ID agenda playing out, Microsoft has published instructions for developers on how to use an API that is not yet active.

The API, or programming interface, is designed to let apps on the Windows 11 operating system find out a user’s age bracket, and whether that age has been verified by an “identity provider.”

The age bracket is very broad: under 10, 10-12, 13-15, 16-17, and 18 and over. The verification status, on the other hand, can be one of five options: Verified, Unverified, OptedOut, TemporarilyUnavailable, or NotApplicable.

Microsoft does not go into what these identity providers will be, or what evidence they will use to verify a person’s age. The company only says that the second value returned by the API will show “whether the user’s age has been independently verified by the identity provider.”

Microsoft frames this as a way to improve privacy, by giving app developers a way to determine a user’s age without actually knowing their date of birth, or any other personally identifiable information. According to Microsoft, this is a “privacy-preserving mechanism” that will allow apps to comply with regulations concerning child safety. But, as we’ve seen from bills that call for this type of technology to be installed in operating system, this is all about normalizing age checks (and therefore ID checks) at all stages of digital life.

In this case, an age signal does not directly expose the user’s age or date of birth. Instead, it provides a way to adapt content, features, or access controls in an app based on the user’s age range and age verification status. For example, an app can use the age signal for user-generated content, social or communication tools, in-app purchases, virtual currencies, or maturity-rated media.

Microsoft goes into some detail about how developers can use the API, but notes that it is not yet available and will not return any useful data until it is turned on later in the year. For now, the company is providing the documentation ahead of the release to give developers a head start.

In January 2024, Microsoft was more cautious about the possibility of creating a system to determine a user’s age online. At the time, the company said it was exploring various methods and seeking expert input, but was not sure that the technical solution was there yet.

“There is currently no clear technical solution to age assurance that achieves the accuracy needed to effectively identify or verify a user’s age without risking trade-offs such as potential security, privacy, and human rights risks,” a Microsoft blog post said at the time.

California has since created its own framework for age verification.

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Microsoft knows your entire browser history — and it can send it to the FBI

Virtual Private Networks are meant to shield your browsing history from all manner of prying eyes, including your internet service provider, your workplace or school, and even potential hackers. If you use a VPN with your Windows PC, though, I have some bad news: Microsoft has a full record of your browsing habits, and it can even report your activity to the FBI.

According to court documents released on July 1, a 19-year-old young man working with the cyber criminal group known as Scattered Spider was caught hacking into a computer system belonging to a luxury jewelry store. While inside, the hacker stole company data and demanded $8 million in cryptocurrency for ransom. Ultimately, the jewelry store kicked the hacker out of its system without paying the ransom, and the perpetrator was later arrested and charged.

It’s a simple case of conspiracy, digital intrusion, and fraud … but there’s a catch.

The hacker’s identity should have been hidden from the feds.

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Microsoft Word’s Woke New Feature Will Help You Always Be Inclusive Of ‘Every Gender’

Microsoft Word introduced a new “inclusiveness” feature to look for supposed bias in documents — including language it deems not representative of “all genders.”

Clarity, formality, conciseness and now inclusiveness are all categories of “refinements” Microsoft offers under the editing tool on Word. The woke tool suggests changes to make word choice “inclusive of all genders,” like changing “chairman” to “chairperson” and “mankind” to “humankind” or “humanity,” among many others, as a Consumers’ Research video shows. 

Microsoft did not immediately respond to the Daily Caller News Foundation’s request for comment.

“It’s hardly surprising that Microsoft has an ‘inclusiveness editor’ for Word documents so that users are forced to comply with woke madness. Suggesting users change common words like ‘mankind’ and ‘firemen’ to be more gender-neutral is not a true grammatical error; it is a targeted ideological tactic to remove the very notion of gender from society,” Will Hild, executive director of Consumers’ Research said in a statement to the DCNF.

This adds to Microsoft’ efforts to support woke ideology, which include donating money to “groups promoting gender ideology on kids” and offering a library of videos to train people on being inclusive, according to Consumers’ Research.

The company’s innovation has come from its “commitment to [d]iversity and [i]nclusion,” Lindsay-Rae McIntyre, Microsoft’s Chief Diversity Officer and Corporate Vice President of Talent and Learning, said in Microsoft’s 2024 Global Diversity and Inclusion Report.

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Microsoft Confirms Windows GDID Device Identifier That Cannot Be Disabled, Documented in FBI Case Filing

Microsoft has publicly acknowledged the existence of the Global Device Identifier (GDID), a device-specific ID assigned to Windows installations, in a federal complaint filed by US prosecutors against an alleged member of the Scattered Spider hacking group.

The ID is generated when Windows is set up with a Microsoft Account, persists through Windows updates, and cannot be disabled without affecting Windows activation and Microsoft Store apps.

Microsoft briefly mentioned GDID in the Azure Monitor documentation, describing it only as “an identifier used by Microsoft internally.” The complaint cites a Microsoft representative describing GDID as “a persistent, device-level identifier designed to uniquely identify an installation of a Windows operating system on a device, either a physical device such as a mobile phone or laptop or a virtual machine, across certain Microsoft services and scenarios.”

What the Windows Global Device Identifier Is and How the FBI Used It

The Global Device Identifier (GDID) is a permanent ID assigned when Windows provisions against a Microsoft Account. It is generated by a chain of Windows services.

The wlidsvc service requests a Device PUID from login.live.com, which is then registered into Microsoft’s Device Directory Service by the Connected Devices Platform.

Delivery Optimization reports the GDID back to Microsoft when the PC shares or downloads updates. This identifier is stored in the Windows registry under HKCU\SOFTWARE\Microsoft\IdentityCRL\ExtendedProperties and formatted with a lowercase “g” prefix followed by a decimal number.

It is reported to Microsoft servers and remains persistent across Windows updates, but it is not retained after a clean reinstall. Microsoft has acknowledged that one user can have multiple GDIDs linked through their account, OneDrive, and activation history.

The FBI used the GDID to track Peter Stokes, alleged member of Scattered Spider, across VPN connections, proxy servers, and through four countries over roughly eight months.

According to the complaint, the GDID g:6755467234350028 was recorded visiting the ngrok signup page at the same time an account used in the attack was created via a Tzulo VPN proxy. Three hours later, the same GDID accessed a victim retailer’s website through the same proxy.

The device was cross-referenced with IP addresses linked to Stokes’s accounts on Snapchat, Facebook, Apple, and Ubisoft across Estonia, New York, Thailand, and other locations. Stokes’s public Snapchat photos matched hotel bookings, locations, and travel timelines associated with the GDID.

The persistent nature of the GDID across VPN sessions proved a key investigative asset. While VPN IP addresses change frequently, the underlying Windows installation continued reporting the same identifier, aiding investigators in their tracking efforts.

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CISA: Windows BlueHammer flaw now exploited by ransomware gangs

CISA confirmed on Monday that ransomware gangs have begun exploiting a high-severity Microsoft Defender privilege escalation vulnerability that has previously been abused in zero-day attacks.

Dubbed BlueHammer, the security flaw (CVE-2026-33825) was leaked by a security researcher known as “Nightmare Eclipse” in early April, together with proof-of-concept exploit code, in protest at how the Microsoft Security Response Center (MSRC) handles the disclosure process.

“Insufficient granularity of access control in Microsoft Defender allows an authorized attacker to elevate privileges locally,” Microsoft explains in a security advisory.

Will Dormann, principal vulnerability analyst at Tharros, told BleepingComputer in April that while the issue is not easy to exploit, it gives local attackers access to the Security Account Manager (SAM) database, which contains password hashes for local accounts.

With this access, they can escalate to SYSTEM privileges and potentially take complete control of the targeted system.

“At that point, [the attackers] basically own the system, and can do things like spawn a SYSTEM-privileged shell,” Dormann said.

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Nadella’s Hedge: Microsoft Wants To Make AI Models Cheap – Then Own The Rails They Run On

The entire AI capital cycle – roughly $700 billion in hyperscaler capex this year, an estimated $2 trillion-plus through 2028 – is collateralized by one belief: that intelligence is scarce, and therefore priceable. That belief is already under strain. Per-token inference prices have fallen on the order of 200× in a year, and the only thing holding revenue up is volume; the cost of intelligence is dropping even as the cost of deploying it climbs. Hyperscaler free cash flow is rolling over. The Fed has named AI capital spending a systemic risk. 

And after falling behind in the race to build the best AI, Microsoft is setting up for a massive hedge. The company is on track to spend north of $120 billion this fiscal year – most of it on GPUs and the data centers that house them, $37.5 billion in a single quarter alone, pushing free cash flow negative for the first time in a generation. That is a company betting intelligence is scarce. Yet to the Wall Street Journal last week, Nadella argued the opposite is coming – that intelligence is about to get cheap. The tell isn’t a contradiction. It’s a hedge: if you can’t win the race to build the best model, you make the model worthless and own the road it runs on.

Microsoft is already executing on the hedge. In the weeks surrounding the interview, the company rolled out a new wave of lower-cost models and made Copilot Cowork generally available worldwide – an autonomous agent designed for long-running tasks that lets users (or the system) dynamically route work across multiple models, explicitly including cheaper options. Axios reported that Microsoft is also actively weighing whether to host a version of DeepSeek, the ultralow-cost Chinese model, directly inside Azure for Copilot customers. The model would be optional for users, fully hosted on Microsoft’s infrastructure, and wrapped in the company’s enterprise security, compliance, and data-residency controls.

These aren’t side-quests, they are the product-level proof of the thesis: make intelligence abundant and interchangeable while keeping the customer, the data, and the workflow inside Microsoft’s perimeter.

Nadella believes intelligence is about to become abundant, interchangeable, and cheap, as a wave of agents routes work to the lowest bidder. And as the cost per unit of intelligence plummets, he wants Microsoft to own the rails it runs on.

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