Microsoft is once again under investigation for antitrust practices by the European Union, specifically over allegations that it has unlawfully integrated its Teams chat application into its Office 365 and Microsoft 365 subscription packages, giving it an unfair advantage in the market. The European Commission has informed Microsoft of a breach of EU antitrust rules and stated that tying Teams to its productivity applications could violate competition regulations.
Margrethe Vestager, head of competition policy in Europe, expressed concerns about Microsoft’s behavior and how it could give Teams an unfair advantage over its competitors. In response to the investigation, Microsoft previously separated Teams from Office in Europe and made it a standalone application worldwide. However, these actions have not been enough to prevent the charges. Brad Smith, Microsoft’s chairman, acknowledged the need to address the Commission’s concerns and work towards finding solutions.
The antitrust investigation was initiated following a complaint from Slack in July 2020, alleging that Microsoft was unfairly tying Teams to its Office suite, making it difficult for users to remove and concealing the true cost from customers. If found guilty of antitrust violations, Microsoft could face fines of up to 10% of its annual global revenue. The European Commission could also impose remedies to compel Microsoft to modify its software products as it has done in the past with other companies.
In previous cases, Microsoft has been ordered to offer versions of Windows without certain features such as Media Player and implement browser choice screens in its operating systems to promote competition. The company has faced hefty fines for non-compliance with competition regulations highlighting the importance of adhering to antitrust laws in the EU market.
Microsoft must now take immediate action to address these allegations and find a solution that complies with EU antitrust regulations. Failure to do so could result in severe consequences for both the company and its customers.
