Microsoft has been steadily scaling back its China presence, closing at least 15 branch offices and joint ventures over the past five years as Beijing favors domestic software. U.S. export controls also make it harder to grow its cloud and AI businesses, leaving the market with relatively little economic upside. Reuters reports: Microsoft took a major hit from the erosion of trust between Washington and Beijing, the five people said. China has since 2017 pushed the use of domestic software, which Beijing sees as more secure and whose quality is increasingly competitive with Windows and Office. U.S. restrictions, including export controls on advanced technology, have meanwhile hindered efforts to scale Microsoft's lucrative AI and cloud businesses in China. [...] Microsoft ultimately decided to remain because it had carved out a profitable business servicing Chinese companies like TikTok owner ByteDance, which need Western technology to manage overseas operations, according to three people familiar with the matter. The company also believed that it needed a presence to maintain access to China's world-class engineering talent, two of them said. Microsoft had also cultivated a relationship with the government that is among the deepest of any tech company, its former China head Alain Crozier told Reuters. "Because of the geopolitics ... some days it's a little bit harder, but we never had a crisis," he said. A Microsoft spokesperson did not address questions about the firm's deliberations on its China business but said it operates in a regulatory "environment that applies to every international supplier" and that it remains committed to the Chinese market. The state of Microsoft's China business reflects market competition, regulatory demands and technological trends, the company said.

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Microsoft is merging its consumer Copilot and Microsoft 365 Copilot apps ahead of a broader "super app" launch later this year. "Both personal and work accounts will be moved to the new unified app, which recycles the 'Microsoft Copilot' name but features an updated app icon," reports The Verge. "The single app also means there won't be two annoying Copilot icons in the system tray or taskbar anymore." From the report: The updates are intended to be a technical milestone in preparation of the "super app" Microsoft is planning to launch later this year, so this is laying the foundations of what will be changing for Copilot products. A worldwide rollout for the mobile and web apps will start in "mid-August," according to Microsoft, with a rollout to Windows and Mac apps set for "mid-September." Mobile app users will be prompted to download the new Copilot app, and the updates will start appearing for some Windows Insiders this week. What changes you'll see will depend on which Copilot apps you're already using. Existing Microsoft Copilot users will be moved to the updated version, along with your chats and content, while Microsoft 365 Copilot app users will see "minor navigation changes," the updated Copilot icon, and gain access to Copilot chat. If you already use both apps, Microsoft says your chats and content will be merged to a single updated Copilot app, but notes that chats, content, and data will remain separate between account types within the app. Microsoft says enterprise security, compliance, and government controls will remain unchanged and core Copilot features will remain free, though usage limits may vary. Podcasts, Deep Research, and Group Chat content will, however, be discontinued after August 18. The company also says Shopping and Copilot Health "may be temporarily unavailable" during the transition.

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Microsoft shares surged as much as 17% after reporting 43% growth in Azure revenue, putting the company on track to add a record $490 billion in market value in a single day. Bloomberg notes that it "would eclipse Nvidia's $440 billion addition, following President Donald Trump's announcement of a 90-day tariff pause last year, as the biggest ever." From the report: The nearly $500 billion jump is larger than the market capitalization of roughly 96% of S&P 500 stocks, data compiled by Bloomberg show. It's also bigger than the combined value of the benchmark's 44 smallest members, which includes companies like Domino's Pizza Inc., Clorox Co. and Hasbro Inc. Microsoft's one-day add in value also dwarfs many of the world's other equity markets. South Africa, Turkey, Finland and Vietnam all have total stock market values that are less than what the software maker is set to add on Thursday.

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LG is removing a McAfee pop-up ad from its LG Monitor App Installer after criticism that some LG monitors were silently installing the app through Windows Update and showing ads on every boot. Microsoft says LG agreed to disable the McAfee pop-up, but the broader issue remains: Windows allows certain peripheral companion apps to install automatically without notifying users. Ars Technica reports: Following Gamers Nexus' video, a Microsoft representative stated that the LG Monitor App Installer will no longer show pop-up ads for McAfee. In response to a social media post about the app, Pavan Davuluri, EVP of Windows and devices at Microsoft, said this week: "We've connected with the team at LG and as an immediate next step, they have agreed to disable the McAfee pop-up from their app. We appreciate LG working with us toward a shared goal of a better experience for our mutual customers. We will keep improving here with our ecosystem partners." As mentioned, some LG monitors appear to have been installing LG Monitor App Installer onto Windows computers for months. Publication Windows Latest noted that the app recently got an update, "and its changelog mentions McAfee as an additional app," which could be what prompted more people to see the ads... and then complain about them. However, the removal of McAfee doesn't address the problem of a peripheral installing ad-pushing software onto people's computers. Users have been finding LG Monitor App Installer and its ads on their systems without LG ever showing a prompt or asking for permission. LG has some of the most expensive computer monitors available. Paying, in some cases, over $1,000 for a monitor that ends up forcing ads onto Windows is disruptive and a privacy concern. Once the app is installed, "LG technically possesses permission to use 'all system resources,'" as well as to "collect geolocation, device data, online activity, contacts, user credentials, transactions, and more," [editor-in-chief of Gamers Nexus, Steve Burke] said.

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An anonymous reader quotes a report from XDA Developers: One of the founding members of The Document Foundation and handler of LibreOffice's PR and media relations, Italo Vignoli, took to the LibreOffice blog to call out Microsoft's practices with its Office application. The last time we saw Vignoli take to the stage, we saw him accusing Euro-Office of being just as bad as Microsoft with its practices. Vignoli's new post focuses entirely on Microsoft's strategy. He says that "the dominant format for office documents" is owned by Microsoft Office, particularly the DOCX, XLSX, and PPTX formats. The problem with these formats, Vignoli states, is that they "belong to Microsoft, are controlled by Microsoft and serve Microsoft's interest." This makes it difficult for other formats to take hold. Vignoli explains his point by stating that open document formats don't hide anything. People developing their own apps can use the format to both read and write the document format with perfection. Meanwhile, proprietary formats such as Microsoft's "contain undocumented features, private extensions or behaviors" that developers can't fully adapt to. That means that a presentation that looks great in the source software comes out strange when rebuilt in a third-party app. This, Vignoli says, is a huge issue [...]. Vignoli claims this creates a huge issue with document preservation. If a Word document was saved in one version of Office, will it still be readable in 20 years? Microsoft has added legacy support to its software before, but the company can one day decide that it's not worth the effort anymore and cut it out. When that happens, you have old documents that are either jumbled or unable to be opened at all.

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