Switzerland’s Competition Commission (COMCO) launched a preliminary investigation into Microsoft’s pricing practices.

The probe examines whether recent licensing fee hikes constitute an abuse of the company’s market dominance.

The announcement reportedly caused a 2% decline in Microsoft’s shares. This regulatory scrutiny adds to existing investor concerns regarding the high costs of the company’s AI expansion and the timeline for profitability. Investors are already weighing the financial strain of significant global AI infrastructure investments against valuation fatigue.

Microsoft stated it will cooperate fully with the investigation.