Microsoft Teams + Office bundle leads to official EU antitrust investigation
Microsoft Teams + Office bundle leads to official EU antitrust investigation
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Regulators in the European Union have opened a formal investigation into allegations that Microsoft is unfairly bundling its Teams video conferencing app with its popular Office software as Brussels steps up its scrutiny of big tech groups.
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The European Commission, the EU's executive body, said on Thursday it was concerned that Microsoft was "abusing and defending" its dominant position in the productivity software market "by restricting competition".
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He was concerned that the US tech giant was giving Teams “distribution advantages by not giving customers a choice” over access to the product, the statement said.
The decision is the first such investigation against Microsoft in more than a decade and comes after rivals said the group's concessions to stop tying Teams with its Office 365 software in Europe were insufficient for competition loyal, according to several people with direct knowledge of Brussels thinking.
The investigation could lead to formal charges against Microsoft as early as the fall, according to two people with direct knowledge of the matter. The Financial Times first reported that the EU was set to open a formal investigation into the matter last week.
"We respect the European Commission's work on this case and take our own responsibilities very seriously," Microsoft said. "We will continue to cooperate with the commission and remain committed to finding solutions that will address its concerns."
A spokesperson for the European Commission said Thursday, "We have not received any commitments from Microsoft that would resolve our concerns. It is too early to discuss a remedy for possible abuses."
The EU has intensified its actions against the giants of Silicon Valley in recent years. Margrethe Vestager, the bloc's executive vice president for competition and digital policy, threatened last month to break up Google.
The investigation into Microsoft comes three years after Slack, now owned by Salesforce, filed a complaint with the EU. The workplace messaging app has accused Microsoft of using its dominance to crush competitors by tying Teams to its Office 365 tools.
Microsoft, as part of its negotiations with antitrust investigators, had agreed to stop requiring users to automatically install Teams on their devices. But talks have stalled on whether Microsoft will implement it globally or just in the bloc's 27 member states.
Regulators and competitors are concerned about the price Microsoft would have to charge for Teams if it's no longer tied to Office software. Rivals, such as Slack, fear being undermined by Microsoft.
But if Microsoft raises prices, such a move may be considered bad for consumers. "This puts the commission in a difficult position," a person familiar with the talks said.
The decision against Microsoft, the first Brussels investigation against the group since the commission accused it of tying Internet Explorer to its Windows operating system in 2009, comes after a prolonged truce between the company and the competition watchdog.
Microsoft then reached an agreement with the commission, offering users a choice of browsers. However, in 2013 the EU fined the company €561 million for failing to deliver on its promise.
Regulators in the European Union have opened a formal investigation into allegations that Microsoft is unfairly bundling its Teams video conferencing app with its popular Office software as Brussels steps up its scrutiny of big tech groups.
p>
The European Commission, the EU's executive body, said on Thursday it was concerned that Microsoft was "abusing and defending" its dominant position in the productivity software market "by restricting competition".
>
He was concerned that the US tech giant was giving Teams “distribution advantages by not giving customers a choice” over access to the product, the statement said.
The decision is the first such investigation against Microsoft in more than a decade and comes after rivals said the group's concessions to stop tying Teams with its Office 365 software in Europe were insufficient for competition loyal, according to several people with direct knowledge of Brussels thinking.
The investigation could lead to formal charges against Microsoft as early as the fall, according to two people with direct knowledge of the matter. The Financial Times first reported that the EU was set to open a formal investigation into the matter last week.
"We respect the European Commission's work on this case and take our own responsibilities very seriously," Microsoft said. "We will continue to cooperate with the commission and remain committed to finding solutions that will address its concerns."
A spokesperson for the European Commission said Thursday, "We have not received any commitments from Microsoft that would resolve our concerns. It is too early to discuss a remedy for possible abuses."
The EU has intensified its actions against the giants of Silicon Valley in recent years. Margrethe Vestager, the bloc's executive vice president for competition and digital policy, threatened last month to break up Google.
The investigation into Microsoft comes three years after Slack, now owned by Salesforce, filed a complaint with the EU. The workplace messaging app has accused Microsoft of using its dominance to crush competitors by tying Teams to its Office 365 tools.
Microsoft, as part of its negotiations with antitrust investigators, had agreed to stop requiring users to automatically install Teams on their devices. But talks have stalled on whether Microsoft will implement it globally or just in the bloc's 27 member states.
Regulators and competitors are concerned about the price Microsoft would have to charge for Teams if it's no longer tied to Office software. Rivals, such as Slack, fear being undermined by Microsoft.
But if Microsoft raises prices, such a move may be considered bad for consumers. "This puts the commission in a difficult position," a person familiar with the talks said.
The decision against Microsoft, the first Brussels investigation against the group since the commission accused it of tying Internet Explorer to its Windows operating system in 2009, comes after a prolonged truce between the company and the competition watchdog.
Microsoft then reached an agreement with the commission, offering users a choice of browsers. However, in 2013 the EU fined the company €561 million for failing to deliver on its promise.
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Getty Images
