Brief news
- The European Union has charged Microsoft with violating antitrust laws by packaging its Teams video conferencing and collaboration software with other productivity tools, giving it an unfair edge over competitors.
- The EU claims that Microsoft’s integration of Teams with Office 365 and Microsoft 365 constitutes an illegal abuse of market power that rivals like Zoom and Slack cannot match.
- The charges are part of a string of measures by the EU aimed at cracking down on major tech platforms, including Amazon, Google, Meta, TikTok, and X. The case originated during the Covid-19 pandemic, when videoconferencing and collaboration platforms became critical for remote workforces.
- If the two parties cannot reach an agreement, Microsoft may face a fine of up to 10% of its annual global revenue.
Illustrated news
European Union officials charged Microsoft on Tuesday with violating antitrust laws by packaging its Teams video conferencing and collaboration software with a slew of other productivity tools, giving it an unfair edge over competitors.
Regulators claimed that Microsoft’s integration of Teams with other well-known software products in Office 365 and Microsoft 365, which includes programmes like as Word, Excel, PowerPoint, and Outlook, constituted an illegal abuse of market power that competing businesses such as Zoom and Slack could not match. Regulators said businesses had no choice but to use Teams if they wanted other Microsoft software.
The charges are just the latest in a string of measures by the European Union in recent months aimed at cracking down on the world’s major tech platforms. On Monday, officials accused Apple of breaking competition laws due to its App Store policies. Amazon, Google, Meta, TikTok, and X are all facing inquiries into their business methods and services.
The Microsoft case originated during the Covid-19 pandemic, when videoconferencing and collaboration platforms such as Zoom, Slack, and Teams became critical for remote workforces. In 2020, Slack, which is now owned by Salesforce, claimed to regulators that Microsoft’s bundling of Teams with other productivity software was anticompetitive, triggering the initial EU probe.
E.U. officials claimed Microsoft had an unfair “distribution advantage” by not providing users the option of purchasing Teams alongside other software. Rivals in the videoconferencing tool market have similar hurdles in making their services compatible with other Microsoft applications, according to regulators.
“The conduct may have prevented Teams’ rivals from competing, and in turn innovating, to the detriment of customers,” stated the European Commission, the European Union’s executive department conducting the probe.
The charges filed on Tuesday are just one stage in a long process. Microsoft can now react to the complaint; however, if the two parties cannot reach an agreement, the corporation may face a fine of up to 10% of its annual global revenue.
The lawsuit is similar to the antitrust accusations made decades ago by the United States Justice Department against Microsoft for combining Internet Explorer with its Windows operating system, which was subsequently resolved.
On Tuesday, Microsoft announced that it had taken efforts to address the disagreement. Last year, Microsoft agreed to offer Teams separately from other Office programmes.
“Having unbundled Teams and taken initial interoperability steps, we appreciate the additional clarity provided today and will work to find solutions to address the commission’s remaining concerns.” Microsoft’s president, Brad Smith, issued a statement.
The European Commission stated that Microsoft’s modifications were “insufficient” and urged for additional changes to be made to “restore competition,” without defining what those changes would be.
Source : The New York Times
