Microsoft Is the EU’s Next Big Tech Target
Just a day after Apple was accused of violating the Digital Markets Act, the EU continues its crusade against Big Tech. Microsoft now also faces a potential multibillion-dollar fine, albeit for reasons unrelated to DMA.
Remember when the United States sued Microsoft for merging Internet Explorer with Windows? It was a little more complicated, but what’s old is new again as the EU accuses Microsoft of violating antitrust rules by bundling Team with Office subscriptions.
“We are concerned that Microsoft may be giving its own communications product Teams an undue competitive advantage by tying it to its popular business productivity suites,” EU Commissioner Margrethe Vestager, who heads competition policy for Europe , said in a statement today . .
Last year, Microsoft effectively separated Teams from Office in Europe in an attempt to comply with EU policies, following the EU’s announcement that it would investigate the company. Earlier this year, the company also said it would make the same changes globally , but the steps were not enough, according to EU allegations.
The EU’s public statement is not entirely clear what will be enough, although since existing Office users may continue to upgrade older packages that already include Teams, it is possible that the Commission has concluded that competition is still at risk.
Microsoft is committed to working with the EU and told the Financial Times it is working on solutions, with President Brad Smith saying: “Having separated the teams and taken initial steps to ensure interoperability, we appreciate the additional clarity provided today and will work to find solutions to resolve the issue Remaining problems of the Commission.”
The EU launched an investigation into Microsoft following a complaint from Slack , which runs its own popular remote work suite. If Microsoft is found guilty, it could face a fine of up to 10% of its annual global turnover. According to last year , this amount will be about 21.1 billion dollars.
Microsoft did not immediately respond to Lifehacker’s request for comment.