Microsoft breached antitrust rules by bundling Teams with office software, European Union says
What potential consequences might Microsoft face from the EU's final decision?
Microsoft could face a fine worth up to 10% of its annual global revenue or be forced to carry out "remedies" to satisfy the competition concerns. The commission said Microsoft's changes last year, including offering software packages without Teams for European customers, are not enough to address its concerns and that it needs to do more to "restore competition."
What changes did Microsoft implement to address EU concerns?
Microsoft unbundled Teams from its Microsoft 365 and Office 365 suites in the European Economic Area and Switzerland and offered these suites without Teams at a lower price. Additionally, they enhanced resources on interoperability with Microsoft 365 and Office 365 apps and services, and created new mechanisms to enable third-party solutions to host Office web applications.
How did Microsoft reportedly restrict competition according to the EU?
Microsoft reportedly restricted competition by bundling its Teams messaging and videoconferencing app with its widely used business software, such as Office 365 and Microsoft 365. The European Commission is concerned that this practice gave Teams an unfair distribution advantage and limited the interoperability between Teams' competitors and Microsoft's offerings.