EU Accuses Microsoft Of Antitrust Violation Over Teams Bundling

Microsoft Intel A Microsoft logo is seen in Issy-les-Moulineaux near Paris

European Union officials have accused Microsoft of violating antitrust laws by bundling its communication tool, Teams, with its popular Office software for businesses. This move marks the latest challenge to a US tech giant by the EU.

If the preliminary findings of the EU investigation are confirmed, Microsoft could face a fine of up to 10% of its global revenue, which amounted to $211 billion in the latest financial year.

This development comes on the heels of EU regulators also accusing Apple of breaching the Digital Markets Act, a law aimed at regulating dominant tech platforms. Apple, which denies any wrongdoing, could also face significant fines if the charges are upheld.

Apple faces charges under the Digital Markets Act for alleged breaches.

EU accuses Microsoft of antitrust violations for bundling Teams with Office.

EU's actions reflect a broader effort to regulate dominant tech platforms.

The actions taken by the EU signal a broader effort by European lawmakers to rein in the power of Big Tech and ensure fair competition in the digital market.

The investigation into Microsoft's practices was initiated nearly a year ago following a complaint by Slack, now owned by Salesforce. Slack alleged that Microsoft had unfairly advantaged Teams by automatically including it with Office software, thereby hindering competition.

EU's competition chief Margrethe Vestager expressed concerns that Microsoft's bundling of Teams with its productivity suites may have given the product an unfair advantage over competitors, stifling innovation in the market.

The European Commission found that Microsoft had been compelling customers to acquire Teams by integrating it into its Office 365 and Microsoft 365 suites. This practice, coupled with interoperability limitations, may have hindered competition and innovation, according to the Commission.

While Microsoft has announced plans to stop bundling Teams in Europe and globally, the Commission believes further changes are necessary to restore competition in the market.

In response, Microsoft's President Brad Smith stated that the company would work to address the Commission's concerns and find solutions. Salesforce welcomed the Commission's findings, emphasizing the importance of customer choice and competition in the digital market.