Microsoft Under Investigation by European Commission Over Anticompetitive Practices
The investigation comes after a formal complaint in 2020 by Slack, which alleged illegal practices by Microsoft to circumvent competition.
- The European Commission is investigating Microsoft over its practice of bundling its Teams app with its Office 365 portfolio.
- The investigation will scrutinize whether the company has breached competition regulations of the European Union (EU).
Officials from the European Commission have opened a formal investigation against Microsoft, which will scrutinize if the company’s practice of bundling its Teams app with Office 365 is uncompetitive.
The investigation follows a 2020 complaint filed by Salesforce-owned Slack, which alleged illegal anti-competition practices by Microsoft. The complaint stated that by bundling Teams with highly popular apps such as Word and Outlook, Microsoft is unfairly keeping customers from choosing rival tools. Slack’s complaint also stated that Microsoft used the Office suite to force Teams on users, blocking the app’s removal and being deceptive about the price to enterprise customers.
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The investigation will also check interoperability levels between Microsoft and third-party products. Microsoft has responded to the allegations, stating that it would cooperate with the investigation and work to find solutions to address the commission’s concerns.
The case gains importance with the global transition to remote work operations, in addition to cloud computing and the use of associated software for communication and collaboration purposes. Tools such as Teams and Slack have become essential for operations not just for businesses in the EU but for other countries worldwide.
Earlier this year, Microsoft was under the scanner by the European Commission over competition concerns due to its acquisition deal with Activision Blizzard. The tech giant has made efforts to collaborate with others in the market, such as Nvidia, to gain support. Whether Microsoft emerges unscathed remains to be seen.
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