Microsoft officials said No-IP was a nest of malware activity, but officials at the hosting provider denied this and said Microsoft never even contacted them. Meanwhile, security researchers aren't too happy with Redmond's tactics either. Claudio Guarnieri, an independent botnet researcher, said Microsoft severely overstepped.
“Any other way would have been a better one. Microsoft is building legal precedents to be able to indiscriminately police the Internet at their own discretion. It is absolutely intolerable that Microsoft feels entitled to “take to task” another company and seize its assets, apparently without having explored all possible avenues as No-IP’s statement indicates. Microsoft’s DCU has been disrespectful and uncooperative in many of its recent operations and I’m sure the community will start protesting and refusing to work with them in the future,” he said.
“Whether No-IP was or was not cooperative is irrelevant (still consider that it’s a very small organization), the fact that Microsoft decided “school” them and severely damage their business because they didn’t live up to Microsoft’s own standards is ludicrous.”"