Deep Dives

Microsoft faces EU antitrust investigation over Teams and Office bundling

July 27, 2023
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Microsoft is under investigation by the European Commission for potential antitrust practices linked to its bundling of Teams with its product suites, a concern first raised by Slack in 2020. The investigation aims to establish whether Microsoft denied consumers a choice and violated EU competition rules.

The Complaint and Initial Actions: The issue came to light when Slack filed a complaint in 2020.
  • Slack alleged that Microsoft illegally bundled Teams with Microsoft 365 or Office 365.
  • Additionally, it claimed Microsoft blocked some users from removing the software.
  • Microsoft attempted to prevent a probe by agreeing to remove Teams from its Office suite in April.
  • However, it was unclear how this removal would occur, and the action wasn't sufficient to prevent further concerns.

  • The European Commission's Investigation: Despite Microsoft's efforts, the European Commission has decided to investigate.
  • The Commission is looking into whether Microsoft gave Teams a distribution advantage by not allowing customers to choose whether to include it in their productivity suites.
  • Another aspect of the investigation is whether Microsoft limited interoperability between its productivity suites and competing products.

  • Microsoft's Response: Microsoft has publicly acknowledged the investigation and expressed respect for the European Commission's work.
  • A spokesperson from the company stated that they take their responsibilities seriously and will cooperate fully with the Commission.
  • The company also voiced its commitment to finding solutions that address the Commission's concerns.

  • Past Antitrust Incidents: This is not Microsoft's first encounter with the European Commission regarding antitrust issues.
  • In 2009, the company agreed to offer EU users a range of browser options instead of forcing Internet Explorer use.
  • However, in 2013, a "glitch" prevented the browser choice screen from appearing consistently, resulting in a €561 million ($625 million) fine.

  • Upcoming Developments: The current investigation does not have a specified deadline for decision making.
  • This means it might be some time before any conclusions are announced concerning Microsoft's case.
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