Microsoft stock (MSFT) falls as US targets green card filings for H-1B workers and Italy probes gaming business

Microsoft stock slipped on Thursday as the company faced fresh scrutiny in the US and Europe, with developments involving its foreign workers and gaming business. Microsoft shares were down nearly 2% during Thursday’s trading session.

The developments come from two separate regulatory fronts. In the US, the government has taken action against Microsoft’s use of the permanent labor certification process for foreign workers. In Europe, regulators have opened an investigation into Microsoft-owned gaming companies over how virtual currencies are presented to consumers.

MSFT Stock Down Today: US Action Targets Microsoft’s Permanent Residency Filings

One of the biggest developments involves Microsoft’s foreign-worker filings.

The US Labor Department has suspended Microsoft from using the Permanent Labor Certification, or PERM, program. The move means the department will not accept new or process pending PERM applications involving the company.

The action does not suspend Microsoft’s existing H-1B visas. Instead, PERM is part of the process employers use when seeking permanent residency, or green cards, for foreign workers, including some employees who hold H-1B visas.

The administration cited alleged fraud and concerns about American workers. Vice President JD Vance also accused Microsoft of laying off US workers while obtaining H-1B visas for foreign workers.

According to the Associated Press, Vance said Microsoft had laid off 6,000 US workers while obtaining 6,300 H-1B visas and nearly 3,000 green cards for foreign workers.

Microsoft is among the major US employers that use the H-1B program. The visa is designed for high-skilled foreign workers in jobs that employers say they cannot fill with qualified American workers.

The Labor Department’s action specifically affects Microsoft’s permanent labor certification applications rather than canceling H-1B visas already held by its workers.

Microsoft Stock Falls: Italy Opens Probe Into Microsoft-Owned Gaming Companies

Microsoft is also facing a separate regulatory challenge in Europe.

Italy’s antitrust authority has launched an EU-backed investigation into several Microsoft-owned video-game companies, including Activision Blizzard, over concerns about the use of virtual currencies in games, as per a Reuters report.

The investigation is examining whether consumers can clearly understand how much they are spending when games use different virtual currencies, conversions and bundles. Regulators are also looking at whether certain practices could make purchases less transparent for consumers.

The probe includes concerns around so-called dark patterns, which can influence how consumers make choices, as well as parental controls and the assistance available when gaming accounts are blocked.

Authorities are also examining protections for vulnerable consumers, including minors and people at risk of gaming addiction.

Italy is leading the investigation alongside consumer-protection authorities in Norway and Denmark. The wider action is being coordinated through the European Commission’s Consumer Protection Cooperation Network.

The authorities are examining whether the practices could amount to widespread violations of EU consumer-protection rules affecting consumers in at least three EU member states.