Microsoft

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Microsoft

Basic information
Founded	1975
Type	Public
Industry	Information Technology
Official website	https://www.microsoft.com/

Microsoft Corporation was founded in 1975 by Bill Gates and Paul Allen in Redmond, Washington. Microsoft is one of the "Big Five" tech giants, originally known for developing the computer operating systems MS-DOS and its successor, Windows. They are also famous for developing the Microsoft Office Suite (Word, Excel, PowerPoint, etc.), as well as for their role in the video gaming industry with the Xbox brand, under the Microsoft Gaming division. Additionally, they developed the Surface computing devices and the cloud platform Azure.

Microsoft also owns numerous other tech-related businesses, primarily through business acquisitions. They also commonly invest heavily in artificial intelligence enterprises, most notably, OpenAI (best known for creating ChatGPT).

Controversies

Court cases up to the early 2000s

In a major antitrust case brought by the US Department of Justice, U.S. v. Microsoft Corp., 253 F.3d 34 (D.C. Cir. 2001), Microsoft argued that there was no barrier to entry in the market they were in. A central issue at that time was whether Microsoft could bundle the web browser Internet Explorer with the Microsoft Windows operating system. The District Court stated the following in the court case:

"The District Court condemned a number of provisions in Microsoft's agreements licensing Windows to OEMs, because it found that Microsoft's imposition of those provisions (like many of Microsoft's other actions at issue in this case) serves to reduce usage share of Netscape's browser and, hence, protect Microsoft's operating system monopoly."

The court specifically identified three main license restrictions for Original Equipment Manufacturers (OEMs) that were considered problematic:

1. The prohibition upon the removal of desktop icons, folders, and Start menu entries
2. The prohibition for modifying the initial boot sequence
3. The prohibition of otherwise altering the appearance of the Windows desktop

The case was eventually settled, and did not result in a company breakup.

Section III.H of the Consent Decree required Microsoft to "allow end users and OEMs to enable or remove access to all middleware products­, including web browsers, e-mail clients, and media players ­through a readily accessible, centralized mechanism." End users and OEMs should be able "to specify a non-Microsoft middleware product as the default middleware product to be launched in place of the corresponding Microsoft middleware product."

In the case United States v. Microsoft Corp., 87 F. Supp. 2d 30 (D.D.C. 2000), Microsoft's conduct taken as a whole was described as a "deliberate assault upon entrepreneurial efforts that, could well have enabled the introduction of competition into the market for Intel-compatible PC operating systems". Further, "Microsoft's anti-competitive actions trammeled the competitive process through which the computer software industry generally stimulates innovation and conduces to the optimum benefit of consumers."

Xbox 360 Defect - The "Red Ring of Death"

Main article: Bumpgate

In 2005, Microsoft released the Xbox 360. Not very long after, consumers started reporting problems with their consoles- three red flashing lights on the ring around the power button. This was coined by consumers as the "Red Ring of Death", and by 2007, Xbox's hardware engineers eventually discovered that the reason for it was a defect in the Xbox 360's GPU.

For the first several months of this incident's height of prevalence in 2006, consumers had to pay to get their consoles fixed by Microsoft if the console was outside of its one year warranty. However, by September 2007, they chose to extend the warranty to three years from the date of original purchase, and refunded anyone who had previously paid to get this issue fixed. Judging from current and former employees' comments in the Xbox documentary, Power On: The Story of Xbox, Microsoft seemed to have primarily done this to rescue the Xbox brand. Nonetheless, this was still beneficial to consumers who had made an investment in and enjoyed games from Microsoft's console.

Windows (Win 9x - Win 10)

Main article: Windows

Forced Updates

Beginning with Windows 10, end users can no longer selectively choose updates. Instead, updates are automatically scheduled when a computer is inactive, or before the system is shut down. This has also led to some systems being rendered unusable because of bugged updates that cannot be avoided. Some users have resorted to disabling updates in Windows registry editor, though this prevents them from receiving security updates, which can make their systems vulnerable to attacks.

Resetting preferences during updates

During some Windows updates, the preferences users have set on applications that they have installed, will end up being reset to their default settings. Users have reported this to go as far as resetting permissions for apps, which can be extremely risky for insecure software.

Forced Arbitration

When Windows 10 is installed from the ISO that can be downloaded from Microsoft, the EULA explicitly mentions forced arbitration.^{[citation needed - needs link to EULA]}

Edge

Microsoft Edge is a Chromium-based web browser that comes preinstalled with Windows 10 and later. It is the successor to Internet Explorer.

Controversy	Year started - Year Ended	Background Info	Aftermath	Related Article
Inability to delete	2018 – Present	During major updates for Windows, users have been reporting their installations of Edge being reinstalled to their devices without their consent.	No change
Importing content from other browsers without consent	2020 – ?	Users have reported on frequent occasions that Edge has imported user data from browsers such as Chrome and Firefox without first requesting consent from the user.	Unknown if it still occurs
Resetting primary browser	2017 – Present	Windows has frequently been resetting the default browser to Edge without consent. While there are methods to disable this, it is tedious to achieve, especially for users who are not tech-savvy.	Continues to happen

Windows 11

TPM 2.0 chip requirements

Microsoft updated their system requirements to include Trusted Platform Module 2.0 (TPM) support as a mandatory requirement for upgrading to Windows 11. This would require either a TPM-compatible CPU, or a separate TPM-dedicated chip to be installed on the motherboard, however some users were able to circumvent this requirement by editing the registry. This change resulted in many customers selling or discarding their otherwise functional computers and hardware that did not meet the new system requirements. Microsoft has been frequently reminding users of Windows 10 to upgrade their hardware to be compatible with Windows 11, which has caused many users frequent agitation.

Recall

Main article: Microsoft Copilot's recall feature

In 2024, Microsoft unveiled Recall for Copilot+ PCs, marketed as a way for users to search through what they have done on their computer by recording their screen. This sparked controversy, especially among security experts who worried about the security of screenshots, since it could easily document private information like social-security numbers, bank-account information, and passwords, as well as user browsing behavior. A Python script was developed, called "TotalRecall", that collects the screenshots and descriptions of these recordings, proving the danger of Recall. This feature was delayed after backlash from users.

In 2025, Microsoft re-released Recall, with claims that the tool has resolved the security flaws and it coming disabled by default. However, despite integrating better security, having this feature enabled continues to pose privacy risks for consumers, as it is only a matter of when a vulnerability is discovered for the problems both consumers and businesses initially had with the tool to resurface, especially since it is difficult for users to inspect the screenshots that are taken by the tool.

Family Safety

Main article: Microsoft's anticompetitive practices

A feature seen within Windows 11's parental controls is Family Safety. A key problem shown from this feature is that it can questionably ban certain applications from properly running on the device, with no notice to the administrator in charge of the device. In June 2025, this feature banned the string "Chrome", which blocked the web browser Chrome from functioning. Schools in particular use this feature on devices given out for students to complete classwork remotely, and as Chrome holds the majority market share of web browser usage, (65-70%) there has been mass reports of students being unable to complete their classwork strictly due to this flaw.

Currently, Microsoft has neglected to inform users on rolling out a fix in the future, and the only solutions available to users is to either rename the executable on the affected device or disable "Block inappropriate browsing" inside the Family Safety settings.

Microsoft account dark patterns when installing Windows

An image of a Windows 10 installation, to illustrate the effort required to make an account unattached to a Microsoft account.

Numerous dark patterns have been implemented in the form of vague language and a confusing user interface, which hides the option to create an account without a Microsoft account under sub-menus and small text. The dark patterns in the Windows installation menu have been in place since Windows 10 was launched in 2015, and continue into the Windows 11 installation process.

Removal of games

In early September 2016, Microsoft shut down Xbox Live Indie Games, and in late July 2024, Microsoft shut down its storefront for Xbox 360 games. These shutdowns have made it impossible to obtain new copies of, or in some cases, even play, hundreds of games within the legacy Xbox library..

Office 365 Suite issues

Main article: Microsoft Office 365

The Office 365 program has been facing a number of issues in recent years, with allegations of forced upsell and forced implementation of OneDrive.

Minecraft account migration

Main article: Minecraft account migration

Following Microsoft's acquisition of Minecraft, they have started forcing account migration to users who already had a Mojang account to a Microsoft account. The company gave users a grace period for account migration, after which users would have to purchase Minecraft again if the Mojang account was not migrated.

Discontinued support for Windows Mixed Reality (WMR)

Main article: Windows Mixed Reality (WMR) discontinuation

Beginning with Windows 11 version 24H2, Microsoft no longer supports Windows Mixed Reality, and all support for the platform will end November 1, 2027. This affects device models from manufacturers including Samsung, HP, Lenovo, Acer, Dell, and Microsoft - including their own flagship device, Microsoft HoloLens. Users who wish to continue using these devices must either use Windows 10 or block the 24H2 update from being installed.

Forced Telemetry (Windows 10 and above)

Windows 10 and up are configured to send telemetry by default. Users can only switch it to a reduced mode, but there is no way to disable it completely without resorting to tools and techniques beyond what most normal users have the technical knowledge to implement (disabling services, setting registry keys and group policies, blocking communication using firewalls etc.) and automatic system updates are know to re-enable some of the corresponding components without warning.

Only users of certain editions like the Enterprise version have options to switch it off, but a study conductedby the German ministery of information security in 2018 suggests that even this does not stop telemetry data collection completely.

Telemetry covers a wide variety of system information as well as a multitude of user interactions. Microsoft can configure remotely which and how much data and is collected from a particular system. This can go up to a level where all key presses are transmitted in real time. This makes telemetry very intransparent and difficult to monitor since the kind of data being collected could change at any moment without notice.

This raises concerns of privacy and security, especially for international users in light of the United States Cloud Act. Moreover, it is not uncommon for end user editions of Windows and Office to be used even in medical facilites in certain countries.

Telemetry collection is also associated with excessive disk usage and SSD wearout. Particularly the DiagTrack and CompatTelRunner components are known offenders.

Given the scale of Windows and Office deployments, the collective energy consumed by collecting, transmitting, storing and processing al this data across the globe is also an environmental concern.