EU charges Microsoft with antitrust breach for bundling Teams with Office
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EU Regulators Challenge Microsoft's Practices
European Union regulators have raised concerns over Microsoft's business tactics, alleging that the company may be engaging in potentially abusive practices. The crux of the issue lies in Microsoft's decision to tie its Teams messaging and videoconferencing app to its popular Office 365 and Microsoft 365 business software suites. According to the European Commission, this bundling approach appears to restrict competition within the software market.
Concerns Over Reduced Consumer Choice
The European Commission, which serves as the primary antitrust authority for the 27-nation bloc, contends that Microsoft may have unfairly advantaged Teams by including it automatically with its core productivity applications. This bundling practice negates the consumers' choice to opt for alternative messaging solutions, thus giving Teams a "distribution advantage" over rivals.
Slack's Complaint Sparks Investigation
The investigation follows a complaint lodged by Slack Technologies in July 2023. Slack, which also develops workplace messaging software, argued that Microsoft's integration of Teams with its office productivity suites hinders fair competition. The complaint catalyzed the European Commission to probe further into Microsoft's business practices.
Microsoft's Response
Since the investigation began, Microsoft has taken steps to unbundle Teams from its software packages and has initiated measures to improve interoperability. Despite these adjustments, the European Commission remains unsatisfied, citing that the changes fall short of fully restoring competitive conditions in the market.
Further Steps to Restore Competition
In a prepared statement, Microsoft President Brad Smith acknowledged the commission's feedback. "Having unbundled Teams and taken initial interoperability steps, we appreciate the additional clarity provided today and will work to find solutions to address the Commission‘s remaining concerns," he said. The company has expressed its willingness to cooperate further to resolve the ongoing issues and restore fair competition.
