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Microsoft is set to face its first formal EU antitrust investigation in 15 years. The European Commission has decided to open the probe due to claims that Microsoft unfairly bundles its video conferencing app Teams with its Office software. Microsoft’s previous concessions were deemed insufficient, leading to this investigation. Charges could be brought against Microsoft as early as autumn.
This investigation highlights the EU’s commitment to curbing anti-competitive practices by major tech companies. Apple, Google, and Meta are also undergoing probes for similar behavior.
Microsoft had previously agreed to stop automatically installing Teams on customers’ devices after a complaint from rival Slack. However, discussions between Microsoft and the commission reached an impasse regarding the extent of the concessions and fair pricing for Teams.
Efforts have been made to avoid a formal investigation, but sources suggest this outcome is unlikely. Microsoft states its willingness to cooperate with the commission’s investigation and find pragmatic solutions that address concerns while benefiting customers.
The commission refrained from providing specific comments but acknowledged the ongoing assessment of the complaint based on standard procedures.
This investigation comes at a time of increasing political pressure on Microsoft. An MEP, Stéphanie Yon-Courtin, called on the commission to ensure Microsoft makes meaningful concessions that alleviate competition concerns. Yon-Courtin highlighted the significant user base of Teams compared to Slack and the lack of progress made in the case since the initial complaint.
Notably, this is Microsoft’s first antitrust investigation in Brussels since 2008. The company was previously accused of abusing its dominant position by bundling its Internet Explorer browser with Windows. Although Microsoft reached a settlement, it was fined €561mn in 2013 for failing to fulfill its commitment.
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