Microsoft appears to have violated European Union (EU) antitrust laws by bundling Teams with its other popular applications Office offered to businesses.
If preliminary findings , Microsoft could face a fine of up to 10% of its global revenue.
See also: Improving Copilot in Microsoft Teams with new AI features
The antitrust violation announcement comes a day after EU regulators accused Apple of violating the new Digital Markets Act , which came into effect in March. Apple has denied the allegations of infringement, but it also faces a huge fine if the charges are confirmed.
The new law and EU antitrust rules could bring significant changes to some of the world's largest digital platforms , at least for European users. European lawmakers aim to rein in Big Tech.
The European Commission launched an investigation into Microsoft's software practices almost a year ago. Earlier in 2020, a complaint was made by messaging app Slack, which is now owned by Salesforce (CRM).
See also: Microsoft Mesh: A virtual meeting platform in Teams
Slack had accused Microsoft of unfair practices. The service had said that the integration of its Teams video conferencing app into Office gave Microsoft a significant advantage. As a result, Slack and other similar services did not have a level playing field.
The European Commission shares Slack's concerns. "We are concerned that Microsoft may be giving its own Teams product an unfair advantage over competitors by tying it to popular productivity business," said EU competition chief Margrethe Vestager.
"Maintaining competition for remote communication and collaboration tools is essential, as it also drives innovation in these markets. If confirmed, Microsoft's conduct would be illegal under competition rules," he added.
According to the Commission, Microsoft is forcing customers to acquire Teams by automatically placing it in the Office 365 and Microsoft 365 suites.
Microsoft announced last year that it would discontinue this Teams – Office connection in Europe, and in April of this year said that this would apply worldwide.
Unbundling Teams from the Office Suite could lead to increased competition in the market. Businesses organizations will have the opportunity to choose Teams as a standalone solution, rather than being forced to purchase the entire Office Suite package.
This can lead to greater flexibility for consumers, as they can choose the products that suit them best, regardless of whether they are part of a package or not. It can also lead to greater innovation, as companies will have to compete more directly for the market.
See also: Microsoft Teams: A great solution for muting annoying channels is coming
Finally, unbundling Teams from the Office Suite could lead to greater transparency in the marketplace. Consumers will have a better picture of how individual products and be able to make more informed purchases.
While the Commission acknowledged that the company had started to offer “some suites without Teams,” it said it believed that “more changes in Microsoft’s behavior are needed to restore competition.”
Microsoft President Brad Smith said that actions have been taken and that the company is working further to find solutions that will address the Commission's remaining concerns.
Source: edition.cnn.com
