Teams faces antitrust investigation in Europe by Microsoft for unfair competition

After fifteen years, Microsoft finds itself once again in the spotlight of an antitrust investigation by the European Union. This time, the tech giant is accused of unlawfully bundling its Teams chat application into its Office 365 and Microsoft 365 subscription packages, giving it an unfair advantage in the market. The European Commission has notified Microsoft of a breach of EU antitrust rules, stating that tying Teams to its productivity applications violates competition regulations.

Margrethe Vestager, the head of competition policy in Europe, expressed concerns that Microsoft’s actions could potentially harm competition by giving Teams an edge over its competitors. Microsoft has taken some steps to address the issue by separating Teams from Office in Europe and making it a standalone application globally. However, these measures have not been sufficient to resolve the Commission’s concerns.

The antitrust investigation was triggered by a complaint filed by Slack in July 2020, accusing Microsoft of forcing its Teams product on users, preventing its removal, and concealing its true cost from corporate customers. If found guilty of antitrust violations, Microsoft could face a hefty fine of up to 10% of its annual global revenue. The European Commission could also impose remedies to compel Microsoft to modify its software products, as it has done in the past.

In previous antitrust cases, the European Commission has taken action against Microsoft to promote fair competition. In 2004, Microsoft was ordered to offer a version of Windows without Media Player, resulting in the creation of Windows XP N for EU markets. In 2009, Microsoft had to implement a browser choice screen in Windows to give users the option to choose their preferred web browser. In 2013, Microsoft faced a hefty fine for failing to include this browser choice screen in Windows 7 SP1.