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Senator Wyden Urges FTC Probe Into Microsoft Over Cybersecurity Failures

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U.S. Senator Ron Wyden has called on the Federal Trade Commission (FTC) to investigate Microsoft for what he described as “gross cybersecurity negligence” that he says poses an ongoing threat to U.S. national security.

In a September 10 letter to FTC Chairman Andrew Ferguson, Wyden accused Microsoft of creating vulnerabilities that have led to ransomware attacks on critical infrastructure, including health care organizations. He argued that Microsoft’s default Windows configurations and continued support for outdated encryption standards have left customers exposed.

Wyden compared the company to “an arsonist selling firefighting services,” saying its dominance in enterprise IT leaves agencies and firms with “no choice” but to use its products despite the risks.

The Ascension Case

Wyden highlighted the May 2024 ransomware attack on Ascension, a major U.S. hospital operator, as a prime example. Hackers reportedly exploited a contractor’s laptop after a malicious link appeared through Microsoft’s Bing search engine, eventually breaching Ascension’s Active Directory server and exposing the data of 5.6 million people.

Wyden said Microsoft’s default encryption settings — particularly support for the outdated RC4 standard — facilitated the attack.

Microsoft’s Response

Microsoft acknowledged that RC4 is insecure but stressed it makes up “less than 0.1% of traffic.” The company said it discourages use of RC4 but cannot yet fully disable it because “disabling its use completely would break many customer systems.”

The company pledged to disable RC4 by default in certain Windows products starting Q1 2026 and to roll out additional mitigations.

Broader Context

Wyden has repeatedly urged scrutiny of Microsoft’s role in cyber incidents, including the July 2023 breach by Chinese-linked hackers who stole thousands of U.S. officials’ emails.

The FTC confirmed receipt of Wyden’s letter but offered no further comment.

The senator’s push comes amid broader concerns that the monopoly-like grip of Microsoft on enterprise IT both amplifies security risks and limits customers’ ability to choose safer alternatives.

Trump Considers Tariff Reduction to Secure TikTok Deal

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U.S. President Donald Trump announced on Wednesday that he may lower tariffs on China as an incentive for ByteDance to finalize a deal to sell TikTok, which is used by 170 million Americans.

ByteDance faces an April 5 deadline under a 2024 law requiring it to divest TikTok’s U.S. operations or face a ban due to national security concerns. Trump indicated he is open to extending the deadline if necessary to facilitate a deal, acknowledging that China must approve any sale.

“Maybe I’ll give them a little reduction in tariffs or something to get it done,” Trump told reporters, suggesting the administration is willing to use trade policy as leverage.

China’s commerce ministry reiterated its position that it seeks negotiations based on “mutual respect, equality, and mutual benefit.” Meanwhile, Vice President JD Vance has expressed confidence that a resolution will be reached by the April 5 deadline.

Reports indicate that White House-led discussions are moving toward a plan in which ByteDance’s largest non-Chinese investors would increase their stakes and acquire TikTok’s U.S. operations. The White House has taken an unprecedented role in the negotiations, acting almost like an investment bank.

TikTok briefly went offline in January after the U.S. Supreme Court upheld the ban, but Trump later postponed enforcement until April 5. He has signaled he could extend the deadline further if needed.

The proposed divestiture has sparked legal challenges from free speech advocates, who argue the ban could violate the First Amendment by restricting access to foreign media.

ByteDance Investors Lead Talks on TikTok U.S. Spin-Off Amid National Security Concerns

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Discussions surrounding the future of TikTok are gaining momentum, with the leading non-Chinese investors in its parent company ByteDance taking the reins in talks with the White House. The proposed plan involves spinning off TikTok’s U.S. operations into a separate entity while reducing Chinese ownership to below 20% to meet U.S. legal requirements and avoid a potential ban.

Key figures in the talks include Jeff Yass’ Susquehanna International Group and Bill Ford’s General Atlantic, both of which have stakes in ByteDance and sit on its board. Private equity firm KKR is also reportedly involved in the negotiations. The proposed spin-off would see these investors increase their stakes, and software giant Oracle would continue managing U.S. user data, ensuring it remains inaccessible to Chinese authorities.

This plan follows a law passed in January that mandates ByteDance either sell TikTok or face a national security ban, citing concerns over the app’s ties to the Chinese government. While TikTok has defended its operations, emphasizing the independence of its U.S. data storage and content moderation practices, the law reflects broader concerns in Washington about potential influence operations through the app.

The ongoing discussions have significant implications for TikTok’s future in the U.S., where nearly half of Americans use the app. With the deadline for compliance set for April 5, U.S. investors are moving quickly to finalize the deal, which could potentially reshape the app’s ownership structure while addressing security concerns.