The European Commission, also known as EC, has announced that Microsoft has potentially violated European competition laws by bundling Microsoft Teams with Office 365 and Microsoft 365, giving an edge to their communication and collaboration app over competitors.
Previously, EC had announced a formal investigation into this issue after receiving complaints from Slack since 2020. EC stated that despite Microsoft starting to sell a new version of Microsoft 365 without Teams, this change did not address the competition issues or restore the market to its previous state.
Microsoft has been offering Microsoft Teams to Office 365 customers since 2017, officially replacing Skype for Business in 2021. This statement reflects the initial perspective of EC without specifying any wrongdoing (similar to the Apple case yesterday) which may lead to further penalties of up to 10% of global revenue.
Microsoft has indicated that they will engage with the EU to address the identified issues.
Source: European Commission and Reuters
TLDR: The European Commission suggests that Microsoft’s bundling of Microsoft Teams with Office 365 may have violated competition laws, prompting a formal investigation. Microsoft’s actions have not resolved the competition concerns, and further discussions with the EU are planned.
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