1. U.S. lawmaker questions Defense Department on MSFT's cloud contract with China. 2. Concerns may raise scrutiny on MSFT's military collaboration and data sharing.
While scrutiny exists, historical partnerships with defense contractors suggest MSFT can navigate regulatory questions. Past incidents show short-lived impacts on stock value due to similar concerns.
The inquiry reflects growing geopolitical tensions; however, MSFT has extensive legal and compliance resources.
This could cause immediate regulatory scrutiny, but historical precedents indicate stability in the long term.