In a move set to intensify the ongoing scrutiny of tech giants, the European Commission (EC) has announced an antitrust investigation into Microsoft’s bundling practices concerning its video-conferencing platform, Teams.
The probe, initiated by the executive arm of the European Union, alleges that Microsoft is impeding competition by limiting the ability of rival video-conferencing solutions to effectively compete in the market.
The Financial Times reports that the EC is proceeding with a formal chargesheet against Microsoft following longstanding concerns raised regarding the bundling of Teams within its suite of Office products.
The decision comes after the EC’s declaration in July of the previous year to launch an investigation into Microsoft’s bundling practices.
Despite Microsoft’s pledge in September 2023 to unbundle Teams from its Office suite and facilitate interoperability with competitor products, the EC remains dissatisfied with the progress made on this front.
Consequently, the EC has opted to escalate the matter by issuing a formal chargesheet against the tech giant.
As part of the investigation process, representatives of Microsoft’s competitors are reportedly engaging with EC officials this week to discuss the case.
The outcome of these discussions could potentially impact the trajectory of the EC’s investigation. Should Microsoft offer significant concessions at this stage, there remains the possibility of derailing the EC’s case.
However, failure to address the concerns raised may prompt the EC to proceed with legal action or postpone its decision.
This latest development echoes previous antitrust allegations made against Microsoft, notably by Slack in 2020, prior to its acquisition by Salesforce.
The claims are emblematic of a broader pattern of regulatory scrutiny faced by major tech companies, reflecting ongoing efforts by EU regulators to uphold fair competition practices in the digital marketplace.
The EC’s decision to pursue antitrust charges against Microsoft harks back to historic confrontations between the EU and the tech giant.
In 2013, Microsoft incurred a hefty fine of €561 million (approximately A$916 million) for its failure to comply with an order mandating the unbundling of Internet Explorer from the Windows operating system.
The outcome of the EC’s investigation into Microsoft’s Teams bundling practices is poised to shape the landscape of competition within the digital collaboration tools market.
With the tech industry under increasing regulatory scrutiny globally, the resolution of this case will likely have far-reaching implications for the future of competition policy and market dynamics within the European Union and beyond.
