The European Commission has informed Microsoft of potential antitrust violations related to its integration of Teams, a communication and collaboration tool, with its Office 365 and Microsoft 365 suites.
Teams, launched as part of these widely used cloud-based productivity packages, offer messaging, video calls, and file sharing designed to enhance workplace collaboration across Microsoft’s software ecosystem.
Concerns arise from Microsoft’s dominant position in the SaaS productivity applications market. The Commission suggests Microsoft may have abused this dominance by tying Teams to its core productivity suite since at least April 2019.
This bundling strategy potentially limits competition in the communication and collaboration software market, favoring Microsoft’s comprehensive suite model over standalone competitors.
The Commission’s investigation focuses on whether Microsoft’s practices unfairly restrict customer choice and stifle innovation among Teams’ rivals.
Microsoft’s recent adjustment to offer some suites without Teams was deemed insufficient to address these concerns, prompting the Commission to issue a Statement of Objections, a formal step in antitrust proceedings, outlining potential infringements under Article 102 of the Treaty on the Functioning of the European Union.
The investigation was initiated in July 2023 following complaints from Slack Technologies (now Salesforce) and alfaview GmbH. The Commission’s action underscores its commitment to maintaining competitive fairness in the EU market, with potential penalties including fines up to 10% of Microsoft’s annual global turnover if antitrust violations are confirmed.
Microsoft has the opportunity to respond and defend its position before the Commission proceeds with any enforcement measures.
The outcome of this case will depend on the evidence gathered and Microsoft’s responses during the investigative process. The Commission remains vigilant in ensuring compliance with EU antitrust regulations to safeguard market competition and consumer choice in digital services across the European Economic Area.
