European Union officials have announced that Microsoft has violated EU antitrust laws by bundling its communication product Teams with other popular applications for businesses. This move marks the latest challenge to a US tech giant by the EU.
If confirmed, the preliminary findings of the EU investigation could result in a fine of up to 10% of Microsoft's global revenue, which amounted to $211 billion in its latest financial year.
The European Commission initiated the investigation almost a year ago following a complaint by the cloud-based messaging app Slack, now owned by Salesforce. Slack alleged that Microsoft had unfairly advantaged Teams by automatically including it with its Office software, hindering fair competition.
The EU's competition chief, Margrethe Vestager, expressed concerns that Microsoft's actions may be giving Teams an undue advantage over competitors, stifling innovation in the market for remote communication and collaboration tools.
The Commission stated that Microsoft had been compelling customers to acquire Teams by bundling it with Office 365 and Microsoft 365 suites, limiting interoperability with competitors and impeding competition and innovation.
While Microsoft announced last year that it would cease the bundling practice in Europe and globally, the Commission believes further changes are necessary to restore competition. Microsoft's President, Brad Smith, acknowledged the need for additional solutions to address the Commission's concerns.
Meanwhile, Salesforce welcomed the Commission's findings, stating that the actions against Microsoft are a victory for customer choice and a confirmation that Microsoft's practices with Teams have harmed competition.
The EU's actions against Microsoft and Apple underpin a broader effort by European lawmakers to regulate the power of Big Tech companies and ensure fair competition in the digital market.
