The European Commission has officially launched a formal investigation into Microsoft’s alleged anti-competitive practices regarding the bundling of Teams into its Microsoft 365 services. The investigation was triggered by a three-year-old complaint filed by Slack, Microsoft’s rival, which claimed that the tying of Teams into productivity suites was illegal.
Microsoft has stated that it has been cooperating with the Commission throughout the process and is open to pragmatic solutions that address the concerns raised and benefit customers. However, the investigation has now been initiated, focusing on concerns that Microsoft may be abusing its market position in productivity software and restricting competition in the European Economic Area (EEA), including EU member states and other countries in the area.
The complaint arose during a time when many companies were shifting to cloud services due to the pandemic’s effects, leading to the emergence of new market players and business models, including the possibility of multicloud and hybrid environments.
The European Commission will conduct an “in-depth investigation” as a priority, and there is no specified timeline for its conclusion. If found in breach of EU competition rules, Microsoft could face consequences under Article 102 of the TFEU, which prohibits the abuse of a dominant position.
Microsoft has expressed its respect for the European Commission’s work and its commitment to cooperating in finding solutions to address the concerns raised during the investigation. Other companies, like Salesforce, have not made any additional comments beyond the Commission’s announcement.
