Microsoft is in trouble in the European Union: the future of Teams is in doubt
Microsoft still has time to change its dominant position in the market.
Microsoft could become the subject of an EU antitrust investigation in the coming months. Attempts at dialogue between the company and the European regulator aimed at preventing such an outcome have met with serious obstacles. About it reported Reuters publication, citing competent sources.
Microsoft, which has already paid €2.2 billion in fines over the past 10 years for EU competition violations based on linking the sales of two or more products, is back in the EU spotlight. The initiator was appeal of 2020 Slack acquired by Salesforce.
In 2017, Microsoft added for free Teams in Office 365 and has since become a replacement for Skype for Business. Slack claimed unfair competition from Microsoft, accusing the company of unfairly integrating the Teams work chat and video app into its Office product. Slack representatives did not provide comment.
Last year, Microsoft began negotiations with the European Commission in an attempt to prevent an investigation. The company recently offered to lower the price of its Office product, but without the Teams app.
The European Commission, seeking a level playing field for competitors and more choice for consumers, is asking Microsoft for further price cuts, the sources said. Representatives of the European Commission refrained from commenting.
A Microsoft spokesperson said that the corporation continues to actively engage with the Commission as part of the investigation and is open to pragmatic solutions that will satisfy the goals of the Commission and serve the interests of customers.
If found guilty of violating EU antitrust rules, Microsoft risks a fine of up to 10% of its global turnover. However, the company has an opportunity to improve its offer before the regulator launches an investigation.
IN 2020 Slack Complaint Microsoft is accused of improperly bundling Teams apps with Office 365 tools. Slack alleges that Microsoft is forcing Office users to install Teams software, blocking its removal, and preventing certain types of interactions with competitors.