Microsoft Teams could be facing a major change for customers in some countries
EU officially probing bundling of Teams with Microsoft 365
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The European Commission hasconfirmedit has opened a formal investigation intoMicrosoft’s alleged anti-competitive practices relating to the bundling ofTeamsinto Microsoft 365 services.
The issue stems from a three-year-old complaint by rival company Slack, alleging that Microsoft’s tying of thevideo conferencing appinto its productivity suites is illegal.
Throughout the process, Microsoft has repeatedly told us that it “continue[d] to engage cooperatively with the Commission in its investigation and [has been] open to pragmatic solutions that address its concerns and serve customers well,” however that seemingly got Redmond nowhere.
Microsoft EU investigation
The European Commission confirmed on July 27 that the probe had commenced, citing concerns that Microsoft had been “abusing and defending its market position in productivity software by restricting competition” with a particular emphasis on the European Economic Area (EEA), which includes Iceland, Liechtenstein, Norway, and all of the other countries that make up the European Union.
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The initial complaint stems from a period during which more companies were turning to cloud services following the effects of the pandemic. The Commission says that this transition “enabled the emergence of new market players and business models,” highlighting the possibility of multicloud and hybrid environments.
The “in-depth investigation” will be carried out “as a matter of priority,” says the Commission, though no further indication of timescales was provided. In the worst-case scenario (for Redmond), Microsoft may be found in breach of EU competition rules which prohibit the abuse of a dominant position - specifically,Article 102of the TFEU.
Margrethe Vestager, Executive VP in charge of competition policy for the European Commission, said:
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“We must therefore ensure that the markets for these products remain competitive, and companies are free to choose the products that best meet their needs. This is why we are investigating whether Microsoft’s tying of its productivity suites with Teams may be in breach of EU competition rules.”
A Microsoft spokesperson toldTechRadar Proin an email:
“We respect the European Commission’s work on this case and take our own responsibilities very seriously. We will continue to cooperate with the Commission and remain committed to finding solutions that will address its concerns.”
ASalesforcespokesperson told us that the company had nothing further to add beyond the European Commission’s announcement.
With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!
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