Microsoft has once again found itself under the scrutiny of EU antitrust regulators, this time concerning its popular videoconferencing software, Teams. The European Commission is poised to formally bring charges in the coming weeks, citing fears of undermining fair competition in the market.
Dominance of Microsoft Teams Raises Concerns
Regulators express concerns about the dominance of the Microsoft Teams app and how the company is leveraging its position to limit alternative solutions. According to the Financial Times, the integration of Teams into the Microsoft 365 office suite and its pricing policy make it challenging for users to opt for other services. Negotiations between the company and regulators have taken place, with Microsoft offering some concessions, such as proposing to separate Teams from its other products. However, these measures were deemed insufficient. A major complaint revolves around the lack of compatibility and data portability between Teams and competitor services, complicating the process for users to switch video conferencing platforms.
Implications and Potential Sanctions
The forthcoming antitrust charges will effectively end the truce between the EU and Microsoft, which had lasted about a decade following a series of high-profile cases in the early 2000s. If found guilty of violating EU antitrust law, Microsoft could face fines of up to 10% of its annual revenue. This reignites concerns about abuse of dominant position by Microsoft in Europe, signaling a potential shift in regulatory dynamics, notes NIX Solutions.
Formal claims are expected to be filed in the coming weeks, and we’ll keep you updated on any developments in this ongoing saga.