EU opens antitrust investigation into Microsoft

Microsoft office in Chevy Chase, Maryland, USA

The investigation is aimed at determining whether the US software giant is abusing and trying to maintain its market position by integrating Teams into its Office software suite. The investigation comes amid an increase in the use of online meetings since the Covid-19 pandemic.

Collaboration and remote communication tools like Teams have become indispensable for many businesses in Europe, and the European Union (EU) needs to ensure that markets for these products are competitive and that customers are free to choose the products that best suit their needs, according to European Antitrust Commissioner Margrethe Vestager.

A Microsoft spokesperson said the company will cooperate with the EC investigation and takes its responsibilities seriously. Microsoft is also committed to finding solutions to address these concerns.

Teams is a platform that allows users to communicate via messages, video calls and file sharing. The EC opened an investigation based on a complaint from Slack in July 2022. Slack, an American startup that competes with Teams, filed a complaint with the EC after its market share fell. Platforms that compete with Teams also include Zoom, Google Meet and Cisco Webex.

Microsoft has included Teams in its Office 365 and Microsoft 365 cloud suites, which include popular office tools such as Word, Excel, Powerpoint, and Excel. The EC said that the move to cloud platforms and applications allows more companies to enter the market, noting that such software is often subscription-based, meaning users sign up for a long-term subscription. Therefore, expanding the cloud suite as Microsoft has done (including Teams in its Office suite) would limit competition in Europe. The EC is concerned that by doing so, Microsoft could create a competitive advantage for Teams, denying customers the choice of whether or not to access the product because they are already subscribed to Microsoft's suite. According to the EC, these moves could constitute anti-competitive behavior, eliminating providers of other tools.

If the investigation finds that Microsoft has violated the rules, the company could face a hefty fine or be required to take corrective measures at the request of EU authorities. It is unclear when the investigation will end.

According to VNA