Unfair Advantage? Microsoft Yields to EU Antitrust Crackdown on Teams Software
Microsoft Concedes to EU Competition Regulators' Demands on Teams Software - Microsoft Caves to EU Competition Demands on Teams Software
Brussels took action in 2023 after Slack lodged a complaint. The antitrust enforcers accused Microsoft of playing dirty by packaging Teams with Office 365 and Microsoft 365, giving its own software an unfair leg up. Changes have been made, but they weren't enough to appease the commission.
Sources in Brussels spill the beans about a forthcoming Office edition sans Teams, priced lower than itsbundled counterparts. Users will also find it a breeze to migrate to this reduced-feature version. Moreover, Microsoft supposedly agreed to hand over data to competitors. Rival devs could then seamlessly integrate links to Microsoft Word, Excel, or PowerPoint into their programs, making them Office-compatible.
The EU Commission is yet to announce its final decision on whether Microsoft's proposals pass muster. If the tech giant continues to stand accused of anticompetitive practices despite these concessions, it risks a hefty fine equivalent to ten percent of its annual revenue. The EU has previously slammed Microsoft with hefty fines for said anticompetitive behavior.
Teams empowers office workers to conduct video conferences and exchange text, notes, and documents. Slack Technologies and other contenders like Zoom and Google Meet offer similar services.
- Microsoft
- Office Software
- EU
- Europe
- Competition Regulation
- Brussels
- EU Commission
Current Status of Microsoft's Concessions to the EU Commission:
Microsoft tabled concessions in response to antitrust concerns about bundling Teams with Microsoft 365 and Office 365 in the EU. Here's the lowdown on the latest developments:
- Proposed Solutions: Microsoft put forth a plan to offer European customers an Office 365/Microsoft 365 option sans Teams at a reduced price point compared to Teams-included versions, aiming to quell competitors' and regulators' complaints[2][4].
- Interoperability Promises: Microsoft also agreed to enhance interoperability with rival products by granting competitors access to essential technical tools and documentation. This include enabling competitors to integrate Office web apps like Word, Excel, and PowerPoint into their platforms, easing compatibility with Microsoft services[2][3].
- Feedback Collection: The European Commission is currently gathering feedback from stakeholders on these proposals. If there are no major reservations, the Commission might greenlight Microsoft's plan, potentially wrapping up the antitrust investigation[1][4].
- Global Standardization: Microsoft hinted that if these commitments are upheld, it would standardize its globally offered suites and pricing in line with its EU plans, ensuring consistency across various markets[4].
This turn of events came after Slack Technologies (now owned by Salesforce) lodged a complaint in 2020, alleging that Microsoft's bundling of Teams with its Office suite gave it an undue advantage in the corporate communications market[2][4].
- The EU Commission is currently gathering feedback from stakeholders on Microsoft's proposed solutions, which include offering an office software option without Teams at a reduced price in Europe, aiming to quell competitors' and regulators' complaints.
- Microsoft has also promised to enhance interoperability with rival products by granting competitors access to essential technical tools and documentation, enabling them to integrate Office web apps like Word, Excel, and PowerPoint into their platforms, easing compatibility with Microsoft services.
