The European Commission has formally charged Microsoft with antitrust violations for integrating its messaging app Teams with its suite of productivity applications. This bundling practice, according to the Commission, gives Teams an unfair advantage over competing communication tools in the market. Microsoft faces potential fines amounting to 10% of its global annual revenue, which could reach up to $23.7 billion, depending on the outcome of the investigation.
The Commission’s investigation was prompted by complaints from competitors like Slack Technologies and Alfaview GmbH, alleging that Microsoft’s bundling strategy restricts customer choice and stifles competition. Despite Microsoft’s efforts to offer productivity suites without Teams following the Commission’s scrutiny, regulators remain unconvinced that this resolves the antitrust concerns raised.
This case marks another significant antitrust challenge for American tech giants in Europe this week, following similar charges against Apple under the Digital Markets Act. Microsoft now has the opportunity to respond to the Commission’s charges and present its defense, with the outcome of the investigation likely to influence future regulations and practices within the tech industry across Europe.
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