European Union regulators have charged Microsoft with violating antitrust rules by bundling its Teams video conferencing software with other productivity tools, giving it an unfair advantage over competitors like Zoom and Slack. The regulators argue that Microsoft’s packaging of Teams with well-established software like Word, Excel, and Outlook in Office 365 and Microsoft 365 is an abuse of market dominance.
This latest charge is part of the European Union’s crackdown on tech giants, with Apple also facing accusations of violating competition rules for its App Store policies. The Microsoft case stems from complaints by Slack, now owned by Salesforce, that Microsoft’s bundling of Teams was anticompetitive during the Covid-19 pandemic when remote work became essential.
Regulators say Microsoft’s actions have hindered competition and innovation in the video conferencing market, as rivals struggle to make their services compatible with Microsoft software. The European Commission has given Microsoft the opportunity to respond to the charges, but if no agreement is reached, the company could face a hefty fine.
Microsoft has taken steps to address the issue by selling Teams separately from Office products, but the European Commission deems these changes as insufficient. Microsoft’s president, Brad Smith, has stated that the company will work to find solutions to address the remaining concerns.
The case draws parallels to the U.S. Justice Department’s antitrust charges against Microsoft for bundling Internet Explorer with its Windows operating system years ago. The outcome of this latest antitrust battle will have significant implications for the tech industry and competition in the market.
