The European Union's protracted antitrust investigation into Microsoft's bundling of its Teams application with Office 365 appears to be approaching a resolution. The European Commission has initiated a public consultation on Microsoft's latest commitments aimed at addressing competition concerns. These commitments include offering Office 365 and Microsoft 365 without Teams at discounted rates, allowing customers to switch between packages without Teams, and enhancing interoperability for rival software and data portability from Teams. This development follows a 2020 complaint from Slack Technologies, now owned by Salesforce, alleging that Microsoft unfairly bundled Teams with its Office suite to stifle competition. If accepted, these commitments—intended to be legally binding for up to 10 years—could conclude the investigation. Failure to comply may result in fines up to 10% of Microsoft's global revenue. Microsoft's Vice President of European government affairs expressed optimism for a resolution within months, while Salesforce insists on thorough scrutiny of the proposed remedies to ensure they effectively address anti-competitive practices. (apnews.com)
The European Commission's move to seek public feedback on Microsoft's proposals is a significant step toward resolving the antitrust case. The Commission's concerns center on Microsoft's practice of bundling Teams with its Office suite, which may have granted Teams a distribution advantage by not giving customers the choice to acquire access to Teams when subscribing to Office 365 and Microsoft 365. This advantage may have been further exacerbated by interoperability limitations between Teams' competitors and Microsoft's offerings. The Commission's preliminary view is that such conduct may have restricted competition and innovation in the market for communication and collaboration products. (euronews.com)
In response to these concerns, Microsoft has proposed several commitments to address the Commission's competition worries. These include making the Office 365 and Microsoft 365 software packages available at a discount without Teams, allowing customers to switch between packages without Teams, and improving interoperability for rival software and data portability from Teams. The Commission has invited all interested parties to submit their views on Microsoft's proposals. If everyone is satisfied, the commitments would become legally binding. Microsoft's commitments would be in force for up to 10 years, and the company could incur fines worth up to 10% of its annual global revenues if it fails to honor them. (apnews.com)
Microsoft's Vice President for European Government Affairs, Nanna-Louise Linde, expressed hope that the Commission will adopt a final decision closing its investigation in the following months. However, Salesforce President Sabastian Niles emphasized the need for a binding, enforceable, and effective remedy to address Microsoft's anti-competitive practices with Teams. (apnews.com)
The outcome of this case could have significant implications for the software industry, particularly concerning how companies bundle products and the importance of maintaining competition and innovation in the market.
Source: NewsTimes https://www.newstimes.com/business/article/long-running-eu-antitrust-case-of-microsoft-teams-20330646.php
