Microsoft is facing accusations from the European Commission regarding antitrust violations related to its Teams messaging and videoconferencing app. The commission believes that Microsoft has been unfairly bundling Teams with its core office productivity applications, such as Office 365 and Microsoft 365, thereby restricting competition. The commission expressed concerns that Microsoft may be giving Teams an advantage over rival messaging apps by not allowing customers a choice in the matter. Margrethe Vestager, the commission’s executive vice-president for competition policy, emphasized the importance of maintaining competition in remote communication and collaboration tools to foster innovation in the market.
This regulatory action against Microsoft comes shortly after the commission accused Apple of breaching EU antitrust rules, highlighting Brussels’ role as a watchdog for Big Tech companies. Despite Microsoft’s attempts to address concerns by offering software packages without Teams for European customers, the commission stated that these changes were insufficient to restore competition. Microsoft President Brad Smith acknowledged the additional clarity provided by the commission and committed to finding solutions to address the remaining concerns. The commission’s investigation was prompted by complaints from rival companies Slack Technologies and Alfaview, alleging that Microsoft’s practices were harmful to competition and violated EU laws.
In response to the accusations, Microsoft has provided customers worldwide with the option to obtain Microsoft 365 and Office 365 without Teams. These software suites include popular programs like Word, Excel, and Outlook. The company now has the opportunity to respond to the commission’s statement of objections before a final decision is made. If found guilty of antitrust violations, Microsoft could face a fine worth up to 10% of its annual global revenue or be required to implement remedies to address competition concerns. Slack Technologies, owned by Salesforce, welcomed the commission’s investigation and urged for swift action to restore free and fair choice in the digital ecosystem, promoting competition, interoperability, and innovation.
The European Commission’s scrutiny of Microsoft’s bundling practices reflects a broader effort to ensure a level playing field for tech companies operating in the EU. By probing potential antitrust violations and enforcing competition rules, the commission aims to protect consumers, promote innovation, and prevent market consolidation. Microsoft’s handling of its Teams app could have wider implications for the digital communication and collaboration market, with implications for rival companies seeking to compete with Microsoft. As the investigation unfolds, stakeholders will be closely monitoring the developments and potential outcomes that could reshape the competitive landscape in the tech industry.
