European Commission Accuses Microsoft Of Monopoly Over Teams Merger With Office

Microsoft president, Brad Smith, make sure to fulfill EU demands (photo: x @BradSmi)

JAKARTA - Microsoft faces a large antitrust fine after the European Commission on Tuesday, June 25 accused the company of illegally combining chat and video Teams apps with its Office products. This provides an unfair advantage over competitors like Slack.

Two decades after the last EU fine imposed on Microsoft, the latest action from the EU competition watchdog was sparked by a 2020 complaint from their rival's workplace messaging app, Slack, owned by Salesforce.

Reuters first reported in April that the EU was preparing for the allegations. The European Commission, acting as the EU's competition watchdog, said Teams had been given temporary distribution benefits while restrictions preventing interactions between Teams competitors and Microsoft's offerings had hampered competitors.

"Maintaining competition for communication tools and long-distance collaboration is very important because it also encourages innovation in this market," said EU antitrust chief Margrethe Vestager, in a statement.

The US tech giant had to pay an EU antitrust fine of 2.2 billion euros (Rp38.6 trillion) two decades ago for binding, or combining, two or more products together and other offenses. Microsoft is at risk of being fined 10% of its global annual turnover if found guilty of the latest antitrust violation.

The Commission said Microsoft's actions were insufficient to address its concerns and that more changes were needed to restore competition.

The EU Commission wants companies to sell Offices without Teams at a lower price than announced. While competitors want clearer interoperability provisions and more incentives for users to switch to them.

Microsoft president Brad Smith reiterated comments made earlier this month about the company's willingness to resolve the issue. "After separating Teams and taking the first step in interoperability, we appreciate the additional clarity given today and will work to find a solution to address the Commission's remaining concerns," Smith said.

The President of Salesforce and Chief Legal Officer, Sabastian Niles, urged the Commission to move towards a fast, binding, and effective solution to restore a free and fair choice.

German competitors and complainants, Alfaview, also welcomed the Commission's accusations against Microsoft. Teams added to Office 365 in 2017 for free and then replaced Skype for Business. Popularity surged during the pandemic in part due to its video conference, but their competitors said the merger of the product provided an unfair advantage for Microsoft.

Microsoft in April separated Teams from Office globally to try to resolve EU antitrust concerns and also make it easier for competitors to function with its products, but sources say the separation is unlikely to please regulators.