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

8 41
05.04.2025

by Renee Dudley

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A few weeks ago, my colleague Doris Burke sent me a story from The New York Times that gave us both deja vu.

The piece reported that Starlink, the satellite internet provider operated by Elon Musk’s SpaceX, had, in the words of Trump administration officials, “donated” internet service to improve wireless connectivity and cell reception at the White House.

The donation puzzled some former officials quoted in the story. But it immediately struck us as the potential Trump-era iteration of a tried-and-true business maneuver we’d spent months reporting on last year. In that investigation, we focused on deals between Microsoft and the Biden administration. At the heart of the arrangements was something that most consumers intuitively understand: “Free” offers usually have a catch.

Microsoft began offering the federal government “free” cybersecurity upgrades and consulting services in 2021, after President Joe Biden pressed tech companies to help bolster the nation’s cyber defenses. Our investigation revealed that the ostensibly altruistic White House Offer, as it was known inside Microsoft, belied a more complex, profit-driven agenda. The company knew the proverbial catch was that, once the free trial period ended, federal customers who had accepted the offer and installed the upgrades would effectively be locked into keeping them because switching to a competitor at that point would be costly and cumbersome.

Former Microsoft employees told me the company’s offer was akin to a drug dealer hooking users with free samples. “If we give you the crack, and you take the crack, you’ll enjoy the crack,” one said. “And then when it comes time for us to take the crack away, your end users will say, ‘Don’t take it away from me.’ And you’ll be forced to pay me.”

What Microsoft predicted internally did indeed come to pass. When the........

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