Microsoft set to face EU competition charges over Teams software
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Brussels will soon present fresh antitrust accusations against Microsoft following fears that the tech behemoth is endangering competitors to its video chat service, Teams.
Three individuals who have insight into the situation have revealed that the European Commission is continuing with the process of creating an official document outlining allegations against the tech company with the highest market capitalization globally. These claims stem from worries that the company is engaging in practices that hinder competition within the industry.
In the previous month, Microsoft presented some proposals to evade being taken legal action against. These included extending a strategy to separate Teams from other applications like Office, globally and not only in Europe.
Despite some insiders' familiarity with their thought process, officials in the EU remained worried that the company didn't take enough steps to ensure market equity.
Competitors are worried that Microsoft might prioritize making Teams work better with its own software compared to competing applications. Additionally, the absence of data transportability makes it challenging for current Teams users to switch to other options.
The commission's action would mark an increase in a situation that began in 2020 when Slack, which is currently owned by Salesforce, lodged an official grievance against Microsoft's Teams.
Putting an end to a ten-year ceasefire between European Union (EU) regulators and the tech giant from the United States, a series of competition investigations concluded in 2013, resulting in major changes. As a result, Microsoft was fined €561mn by the EU for not following their decision about including the Internet Explorer browser with the Windows operating system.
According to insiders from the commission, there could be charges filed within the upcoming weeks. This news has led rival companies of Microsoft to hold meetings this week to discuss the details of the case. This appears to be a clear sign that charges are being prepared against Microsoft by the commission.
Nonetheless, they cautioned that Microsoft still has the potential to present last-minute adjustments that could thwart the EU's argument. Alternatively, the commission may opt to postpone or disregard the allegations against Microsoft.
If Microsoft is found to have violated EU competition laws, it could face penalties of up to 10 percent of its worldwide annual revenue.
The business refused to provide any further explanation but did mention a statement they made earlier. In the previous statement, the company promised to keep interacting with the commission, pay attention to the complaints in the market, and be willing to examine practical remedies that will be beneficial to both the clients and developers in Europe.
The committee refused to give any statement.
The action taken towards Microsoft has occurred during a period where their actions are being closely investigated. Additionally, the EU is examining whether Microsoft's collaboration with OpenAI, which is valued at $13bn and pertains to the creation of ChatGPT, violates competition regulations.
As written in the blog, Microsoft is considered as one of the few technology companies, such as Google and Meta, that are labeled as "gatekeepers" according to the Digital Markets Act. As such, it is required to take on additional responsibilities when conducting business in Europe.
The technology enterprise has been receiving grievances from European cloud computing providers that are uneasy about Microsoft's use of its authoritative state in the area. This behavior allegedly compels users to acquire its products, while pushing out rivalry from emerging companies in Europe.
