Too closely interlinked: Microsoft faces billions in fines in the EU over Teams
The EU believes that Microsoft has gained an unlawful sales advantage - by linking the Teams platform too closely to its Microsoft365 subscription.
The tech industry can't rest. In addition to Apple, Microsoft is also in the European Union's crosshairs. Margrethe Vestager, Vice-President of the European Commission, has published the preliminary results of an investigation into the tech giant from Washington state.
Source: Microsoft
The EU concludes that Microsoft holds a dominant position in the market for business productivity software with its cloud-based Microsoft365 subscription. With the inclusion of Teams in its package-centred business model, the communication tool also benefited. Customers with a Microsoft 365 subscription would not have been able to freely decide whether they also wanted to use Teams or not.
Microsoft removed the communication app from the package last year. Due to the close functional integration with the Office suite (e.g. Outlook for scheduling or OneDrive for file storage), the EU nevertheless fears an unjustified advantage over competitors. It slows down the innovation of other companies.
"First steps towards interoperability" are not enough
The investigation began last year after competitor Slack filed a complaint about "unlawful" bundling and "forced installations" around four years ago. The EU responded to the complaint in 2023. However, these "first steps towards interoperability", as Microsoft called it to the Financial Times, are apparently not enough.
Source: europarl.europa.eu
Unlike other companies, Microsoft reacted positively to the news. In the same statement, the company says: "We appreciate the EU's transparency and continue to work on a solution to allay concerns." Salesforce, the parent company of competitor Slack, is also pleased and is calling for "a swift, binding and effective remedy for free and fair choice in the digital ecosystem".
It could be expensive for Microsoft
For Microsoft, this is the first investigation in Europe since 2009, when it concerned Internet Explorer under Windows XP. Should the EU come to the definitive conclusion that Microsoft has gained an illegal market advantage, this could result in a fine of up to 10 per cent of its annual global turnover. This would be around 20 billion US dollars. The EU could also impose coercive measures, such as requiring Microsoft to offer any interfaces between the Office suite and other messengers in Europe. <p
I've been tinkering with digital networks ever since I found out how to activate both telephone channels on the ISDN card for greater bandwidth. As for the analogue variety, I've been doing that since I learned to talk. Though Winterthur is my adoptive home city, my heart still bleeds red and blue.