Microsoft accused of antitrust violations by EU over Teams app
What's the story
Microsoft is facing antitrust charges from European Union regulators for allegedly bundling its Teams chat app with Office 365 and Microsoft 365 subscriptions. This marks the first time in 15 years that the tech giant has been accused of such violations in the EU. The European Commission has expressed its preliminary view that Microsoft may have breached EU antitrust rules by tying Teams to its popular productivity suites.
Regulatory concerns
EU expresses concern over Microsoft's Teams bundling
Despite Microsoft's efforts to unbundle Teams from Office in Europe and globally, the European Commission remains concerned. Margrethe Vestager, the head of competition policy in Europe, stated that there are worries about Microsoft potentially giving its own product an undue advantage over competitors. The tech company has received a statement of objections outlining these concerns about the bundling of Teams with its productivity suites.
Corporate response
Microsoft responds to EU's antitrust charges
In response to the charges, Microsoft has pledged to find solutions. The company's president, Brad Smith, stated that they appreciate the clarity provided by the European Commission and will work toward addressing their remaining concerns. This commitment comes after Microsoft unbundled Teams and took initial interoperability steps following the antitrust allegations.
Investigation origins
Investigation initiated after Slack's anti-competitive complaint
The investigation into potential antitrust violations was initiated last year following a complaint from Slack. The communication platform accused Microsoft of "illegally tying" its Teams product to Office, "force installing it for millions, blocking its removal, and hiding the true cost to enterprise customers." This complaint has led to the current charges against Microsoft by the European Union regulators. If found guilty, Microsoft may be fined up to 10% of the company's annual worldwide turnover.