Microsoft to take additional steps to resolve EU antitrust investigation into Teams bundling in Office

Microsoft is facing potential antitrust charges from the European Union over its practice of bundling its Teams app with the Office suite.

The EU Commission launched an investigation in 2023 following a complaint from Slack, a competitor owned by Salesforce. The concern is that bundling Teams with Office gives Microsoft an unfair advantage in the collaboration software market.

Microsoft has already attempted to address these concerns by offering Teams as a separate product globally. However, company president Brad Smith anticipates the EU will still issue a formal charge sheet.

I expect we will take additional steps,” he told reporters after earlier meeting EU antitrust chief Margrethe Vestager in Brussels. On Teams, we have done a lot of work, our work isn’t yet done. Microsoft is committed to find a resolution to regulators’ concerns.

Despite this, Microsoft is said to remain committed to finding a resolution with the EU and is prepared to take further steps.

Here’s an easy breakdown:

• Issue: The EU is investigating whether Microsoft is abusing its dominant market position by bundling its Teams communication app with its popular Office suite. This practice, known as tying, can stifle competition in the market for collaboration software.
• Complaint: The investigation was triggered by a 2020 complaint from Slack.
• Microsoft’s actions: Microsoft has already taken steps to address the concerns, including offering Teams as a separate product in Europe (and later globally).
• Possible next steps: Despite these efforts, Microsoft anticipates receiving formal charges (a “statement of objections”) from the EU.
• Microsoft’s stance: Microsoft is committed to finding a resolution with the EU and is prepared to take further actions.

More here.