Microsoft is likely to encounter an antitrust investigation by the European Union (EU) in the coming months. Discussions aimed at resolving the matter and preventing such an investigation have reportedly hit a roadblock, according to sources familiar with the situation. This comes after Microsoft was fined EUR 2.2 billion (approximately Rs. 19,670 crore) in the previous decade for violating EU competition regulations, which included practices like bundling multiple products together. The complaint that triggered the EU’s attention was lodged by Slack, a workspace messaging app owned by Salesforce in 2020.
Microsoft’s Integration of Teams into Office 365
In 2017, Microsoft introduced Teams as a free addition to its Office 365 suite. Eventually, Teams replaced Skype for Business as Microsoft’s primary workplace chat and video application. Slack accused its competitor of unjustly integrating Teams into the Office product.
Stalled Remedy Talks and a Price Cut Proposal
To avoid an investigation, Microsoft initiated discussions with the European Commission last year. As part of its efforts, the tech giant recently proposed reducing the price of its Office product by excluding the Teams app. However, sources indicate that the European Commission is seeking a more substantial price reduction than what Microsoft has offered. The EU executive has refrained from commenting on the matter.
Microsoft’s Cooperative Engagement with the European Commission
A spokesperson for Microsoft stated that the company continues to engage cooperatively with the European Commission’s investigation. Microsoft remains open to pragmatic solutions that address the Commission’s concerns while also serving the best interests of its customers.
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