- By Ashish Singh
- Tue, 25 Jun 2024 06:14 PM (IST)
- Source:Reuters
The European Commission charged Microsoft on Tuesday for unlawfully connecting its chat and video app Teams with its Office suite, which could result in a sizable antitrust fine. The EU competition watchdog's most recent action, which came about two decades after Microsoft's previous EU fine, was prompted by a 2020 complaint from Salesforce-owned rival workspace messaging app Slack.
The EU competition watchdog, the European Commission, claimed that Teams had received a distribution edge and that competitors were further hampered by restrictions that prevented them from interacting with Microsoft's products.
EU antitrust chief Margrethe Vestager said in a statement that "preserving competition for remote communication and collaboration tools is essential as it also fosters innovation on these markets."
Two decades ago, the US tech giant was fined 2.2 billion euros ($2.4 billion) by the EU for engaging in antitrust behaviour by tying together two or more products. If it is found guilty of the antitrust violations revealed on Tuesday, it could face a fine equal to as much as 10% of its annual global turnover.
The Commission claimed that more adjustments were required to restore competition and that Microsoft's actions did not adequately address its concerns. Brad Smith, President of Microsoft, restated remarks made earlier this month regarding the company's commitment to fixing the problem.
"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," Smith stated.
In order to restore a free and fair choice, Salesforce President and Chief Legal Officer Sabastian Niles urged the Commission to act quickly to implement a binding solution.
Alfaview, a German competitor and complainant, likewise applauded the Commission's accusation against Microsoft.
In 2017, Teams was a free addition to Office 365, taking the place of Skype for Business. Due in part to its video conferencing capabilities, its popularity surged during the pandemic; however, competitors claimed that Microsoft had an unfair advantage because it bundled its products together.
In an effort to allay EU antitrust concerns, Microsoft unbundled Teams from Office in April and made it simpler for competitors to use its products. However, according to sources, this move was unlikely to satisfy regulators.