Brazil’s antitrust regulator, CADE, has launched a significant investigation into U.S. tech giant Microsoft. This probe follows a formal complaint filed by the Norwegian browser firm Opera, which alleges unfair competitive practices by Microsoft in the digital market.

At the heart of Opera’s complaint is the assertion that Microsoft unfairly obstructs competitors by pre-installing its Edge browser and setting it as the default on all Windows-running systems. This bundling practice, Opera claims, tilts the playing field significantly against rival browsers, creating an undue advantage for Edge.

Opera specifically highlighted how Microsoft’s framework integrations provide Edge with an unfair advantage, even when considering its relatively smaller market share. Data cited in the complaint from June indicated Opera held a 6.78% share of Brazil’s desktop browser market, with Microsoft’s Edge at 11.52%, while Google Chrome dominated with a 75% share.

CADE’s investigation extends beyond just the Edge browser bundling. The regulator will also scrutinize Microsoft’s broader commercial practices, including its Windows licenses, Microsoft 365, and the innovative Jumpstart program. This wider scope underscores the depth of concern regarding potential anti-competitive behavior.

The Jumpstart program, which enables Microsoft clients to build autonomous AI agents for mundane digital tasks, is particularly under the microscope as part of the company’s AI monetization strategy. This focus reflects a rising global concern about how such advanced AI products could further entrench the dominance of established tech players, sparking critical discussions around AI competition.

This is not the first instance of Opera challenging Microsoft over browser competition. A similar complaint was lodged with the European Commission in December 2007, targeting Microsoft’s then-dominant Internet Explorer. That historical case culminated in 2013 with the European Union fining Microsoft an unprecedented €561 million for failing to comply with commitments to offer browser choices to Windows users.

While the Brazilian situation echoes past concerns, the current environment has evolved, with Edge succeeding Internet Explorer and artificial intelligence now playing a crucial role in product ecosystems. CADE’s decision to formally launch an investigation demonstrates its proactive stance in examining how digital platforms might reinforce market dominance through product design and service bundling, especially when smaller competitors raise legitimate concerns.

The Brazilian investigation adds to a growing list of global antitrust obstacles faced by Microsoft and other major technology companies. As digital services increasingly converge into complex AI and productivity ecosystems, regulators worldwide are scrutinizing whether default settings and bundled tools unfairly favor incumbent firms, potentially stifling innovation and competition.

Although no formal charges have been laid, CADE’s ongoing investigation could have significant downstream effects on the distribution and marketing of both browsers and AI tools not only within Brazil’s borders but potentially across the international technology landscape.