Microsoft in Hot Water Over Teams Bundling with Office Software

The European Commission announced that Microsoft might have violated antitrust rules by bundling its Teams app with Office 365 and Microsoft 365 software, potentially restricting competition by not providing customers a choice. Concerns were raised that this practice could give Teams an unfair advantage over competing messaging apps by limiting their ability to integrate with Microsoft's software. Margrethe Vestager, the commission's Executive Vice President for competition policy, stressed the need for competition to foster innovation. Microsoft previously offered Teams-free software versions for European customers, yet these steps did not fully address the commission's concerns. Microsoft President Brad Smith expressed willingness to find solutions. The investigation began in July 2023 after complaints from Slack Technologies and Alfaview. Slack's parent company, Salesforce, viewed the EU's statement as a move towards restoring competition and innovation. Microsoft could face a fine of up to 10% of its annual global revenue or be required to implement remedies.

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