Microsoft Facing Major Antitrust Fine for Alleged Teams Bundling Abuse
Microsoft is facing a substantial antitrust fine for allegedly abusing its dominant position in the professional 'software as a service' (SaaS) market. The European Commission's preliminary findings suggest that Microsoft's bundling of Teams with Microsoft 365 has provided it with an unfair advantage, disadvantageing competitors like Slack and Alfaview.
The Commission's investigation, which began last July following complaints from Slack Technologies and Alfaview, has found that Microsoft's strategy of bundling Teams with Microsoft 365 has given it an unfair distribution advantage. Customers were not given a choice to opt out of acquiring Teams, which is seen as an attempt to stifle competition.
Microsoft's vice-chair and president, Brad Smith, has acknowledged the concerns and stated that the company would work to find solutions. However, the Commission deemed Microsoft's earlier announcement to unbundle Teams from some software packages sold in Europe insufficient. This is the most severe charge against Microsoft since 2013, when it was fined €561 million for similar practices.
Microsoft must now address these allegations and work with the European Commission to find a resolution that satisfies the regulatory body's competition rules. The Commission will continue its investigation, and a final decision is expected in the coming months. Meanwhile, Microsoft's competitors await the outcome, hoping for a level playing field in the SaaS market.
