The European Union has taken action against Microsoft by launching a formal antitrust investigation into the tech giant's inclusion of its messaging and videoconferencing app, Teams, in its Office 365 and Microsoft 365 packages. The European Commission expressed concerns that this bundling may have granted Teams an unfair advantage over its competitors, potentially hindering fair competition in the cloud-based productivity software market.
During a press briefing on July 27, European Commission spokesperson Arianna Podestà stated;
"Our concern is that Microsoft may be abusing its market position in the cloud-based productivity software by restricting competition in this area. Therefore, we will look into this matter. At this stage, possible commitments are too early to be discussed. We first need to identify if there is a breach of antitrust considerations."
The investigation will closely scrutinize whether Microsoft's decision to integrate Teams into its popular suites for businesses violated EU competition rules. The Commission suspects that this bundling might have deterred alternative communication and collaboration tool providers from competing effectively, potentially harming customers in the European Economic Area (EEA).
The Commission has prioritized this investigation, recognizing the growing significance of remote communication and collaboration tools like Teams for businesses across Europe. Margrethe Vestager, Executive Vice-President in charge of competition policy, emphasized the importance of maintaining competitive markets for such products, allowing companies the freedom to select the solutions that best suit their requirements.
"Remote communication and collaboration tools like Teams have become indispensable for many businesses in Europe. We must, therefore, ensure that the markets for these products remain competitive, and companies are free to choose the products that best meet their needs. This is why we are investigating whether Microsoft's tying its productivity suites with Teams may be in breach of EU competition rules," Vestager said in a statement.
The investigation follows a complaint filed by Slack, a competing messaging app for remote work, in July 2020. Slack accused Microsoft of engaging in illegal practices by integrating Teams with its dominant productivity suites, alleging anti-competitive behavior.
Microsoft's Office 365 and Microsoft 365 packages have garnered widespread popularity among businesses, with Teams serving as a key component of their collaboration and communication offerings. However, the EU investigation aims to ensure that Microsoft's dominance in this sector has not come at the expense of fair competition and consumer choice.
The European Commission's probe into Microsoft's alleged anticompetitive practices could have significant implications for the technology industry and may result in regulatory actions to promote fair competition and safeguard consumer interests in the European market.
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