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The European Union accused Microsoft of offend competition rules Tuesday . In a formalstatement of objections , the bloc said it distrust the package heavyweight of abusing antitrust rule by practice bundling its real - clip comms and collaboration tool , Teams , with popular productivity apps , include its swarm - base suites for businesses Office 365 and Microsoft 365 .
The EU opened an antimonopoly investigation of Microsoft ’s bundling of Teams just under a year ago , back inJuly 2023 — two years aftera ill by Teams rival Slack .
Microsoft come after the examination by announcing a partial unbundling of Teams inlate August last year(which it finally implemented inApril 2024 ) . However , announce the results of its preliminary investigation Tuesday , the European Commission said it suspects the changes Microsoft made to Teams ’ distribution were insufficient to address its vexation and the tech giant needs to go further .
“ The Commission is refer that , since at least April 2019 , Microsoft has been tyingTeamswith its essence SaaS productivity applications , thereby cut back contest on the securities industry for communicating and collaboration products and defending its market side inproductivity software system and its suites - centric model from contend provider of individual software program , ” the Commission wrote in a press release .
The EU suspects Microsoft ’s bundling has given Teams a “ distribution reward ” versus rival intersection , such as Slack . The Commission ’s preliminary eyeshot is also that this may have been further exacerbated by interoperability limitation between Teams ’ competitors and Microsoft ’s offerings . “ The behavior may have keep Teams‘rivals from competing , and in turn innovate , to the hurt of customer in the European Economic Area , ” it adds .
It ’s not only chat - establish apps like Slack that might be impacted . As we pointed outearlier this year , video conferencing companies like Zoom have also potentially been impacted over the year by how Microsoft has bundled Teams — which is an all - in - one ware offering electronic messaging , interpreter and video song , and conferencing to users . Indeed , since Slack file its complaint , the EU noted , it ’s received another complaint from German fellowship alfaview GmbH , a videoconferencing supplier , which it suppose raised “ like headache regarding the distribution of Teams . ” The proceedings it has now opened against Microsoft will consider both Slack ’s and alfaview ’s complaints .
A stately finding of a breach of EU competition rules could result in Microsoft being fined up to 10 % of its annual worldwide upset . The axis could also impose remedies if it decides step are required to rejuvenate competition .
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Microsoft has been adjoin for comment .
The command of remonstration opens a new phase in the investigation , in which Microsoft will be invited to respond to the EU ’s preliminary finding so the last outcome can not be predict . There is also no fixed timeline for EU enforcer to complete their investigations .
Responding to the development in a affirmation , Sabastian Niles , president and chief legal police officer at Salesforce — the CRM monster thatacquired Slack at the end of 2020 — said : “ The Statement of Objections put out today by the European Commission is a win for customer option and an affirmation that Microsoft ’s praxis with Teams have harmed rival . We apprize the Commission ’s exhaustive investigation of Slack ’s complaint and urge the Commission to move towards a swift , binding , and in effect remedy that restores free and fair choice and promote rival , interoperability , and innovation in the digital ecosystem . ”
This news report was update with comment from Slack .
