welcome
ProPublica

ProPublica

US Politics

US Politics

Microsoft Hooked the Government on Its Products With Freebies. Could Elon Musk’s Starlink Be Doing the Same?

ProPublica
Summary
Nutrition label

77% Informative

ProPublica 's investigation focused on deals between Microsoft and the Biden administration.

Microsoft began offering the federal government “free” cybersecurity upgrades and consulting services in 2021 .

The company knew the catch was that once the free trial period ended, federal customers who had accepted the offer would effectively be locked into keeping them.

Experts on government contracting told me the maneuvers were legally tenuous.

Elon Musk directed his company SpaceX to ship 4,000 terminals, at no cost, to the Federal Aviation Administration for installation of its Starlink satellite internet service.

Federal law has long attempted to restrict donations to the government, in large part to maintain oversight on spending.

Microsoft used that exemption to transfer consulting services valued at $150 million to its government customers, entering into gratuitous services agreements.