Microsoft has been accused by the European Union of breaking competition laws by illegally combining its Teams chat program with Office 365 and other Microsoft 365 subscriptions. This is the very first antitrust lawsuit Microsoft has faced in the European Union in fifteen years, after challenges regarding the bundling of Internet Explorer together with Windows Media Player.
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The European Commission declared its initial assessment that Microsoft violated EU competition laws by linking its Teams offering to its well-liked Office 365 and Microsoft 365 productivity suites. The European Union expressed its worries in an announcement of objections, citing the perception that Teams’ bundling gives them an unfair advantage over rivals.
Microsoft's Reaction
Microsoft separated Teams from Office 365 in Europe in the previous year in response to the inquiry, and it later released the program as a stand-alone worldwide. Despite the efforts shown by Microsoft to correct it, The European Commission remains worried. President Brad Smith of Microsoft has stated that the organization is ready to cooperate with the Commission and will endeavour to resolve its outstanding issues.
The Investigation's Beginnings
The antitrust inquiry got underway in July 2020 as a result of a Slack complaint.
Microsoft allegedly "illegally tied" Teams to Office, "forcibly installed it for millions of users, prevented its removal, and concealed the true cost to enterprise customers,"
according to Slack. Salesforce, the parent company of Slack, applauded the Commission’s conclusions, viewing them as a win for consumer choice and market competition.
Possible Repercussions
Should Microsoft be found in breach of antitrust laws, the company may be fined up to ten percent of its yearly global revenue. Like in previous years, the European Commission can additionally implement measures to guarantee equal competition. Microsoft was forced to create a variant of Windows with no Media Player in 2004 and add a browser ballot box to Windows in 2009 so that customers could select their preferred web browser.
Final Thoughts
The accusations made against Microsoft highlight the continuous regulatory examination of big tech’s business practices. The investigation’s potential findings might have a big impact on Microsoft and the tech sector as a whole, reaffirming the European Union’s dedication to encouraging customer choice as well as competition in the world of technology.
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