Microsoft set to face EU antitrust probe over Teams bundle: Report

The European Union (EU) is reportedly considering opening an antitrust investigation into Microsoft’s video and messaging platform, Teams, following a complaint filed by Slack in July 2020. Slack accused Microsoft of engaging in illegal and anti-competitive practices by leveraging its market dominance to suppress competition, in violation of EU competition law.

The complaint specifically alleged that Microsoft unlawfully integrated its Teams product into its dominant Office productivity suite, forcibly installing it for millions of users, preventing its removal, and concealing the true cost to enterprise customers.

Microsoft had attempted to address the concerns raised by the EU before a formal investigation was initiated. In December 2022, the tech giant reportedly offered preliminary concessions to settle the European Commission’s concerns. However, recent reports indicate that Microsoft’s attempts to resolve the situation have encountered obstacles, particularly regarding the price reduction offered for Office without the Teams app, which did not meet the EU’s expectations. As a result, an investigation is now likely, and if Microsoft is found to have violated EU antitrust rules, it could face fines of up to 10% of its global turnover.

Over the past decade, Microsoft has faced several sanctions from the European Commission, resulting in substantial fines in 2004, 2008, and 2015. Earlier this year, the company attempted to prevent another potential investigation by agreeing to modify its cloud computing practices to avoid an antitrust probe from the EU. The investigation was prompted by complaints from European cloud companies, who raised concerns about Microsoft’s restrictive cloud licensing policies that required customers to pay more to run Microsoft software in non-Microsoft cloud environments.

The EU Commission acknowledged receiving multiple complaints regarding Microsoft, including one from Slack concerning the conduct related to its Teams product. The Commission stated that it was assessing the complaint based on its standard procedures.

At the time of reporting, Microsoft had not yet responded to requests for comment.