On Tuesday, the European Union accused Microsoft of violating competitors guidelines. In a proper assertion of objections, the bloc mentioned it suspected the software program large of abusing antitrust guidelines by bundling its real-time communication and collaboration software, Groups, with common productiveness apps, together with the Workplace 365 and Microsoft 365 enterprise cloud suites.
The EU launched an antitrust investigation into Microsoft’s Groups merger just below a yr in the past, again in July 2023 — two years after a grievance by Groups rival Slack.
Microsoft adopted up on the scrutiny by asserting a partial Groups cut up on the finish of August final yr (which was lastly carried out in April 2024). Nevertheless, after asserting the outcomes of its preliminary investigation on Tuesday, the European Fee mentioned it suspected the adjustments Microsoft made to its Groups distribution weren’t sufficient to resolve its issues and the tech large wanted to maneuver on.
“The Fee is worried that, not less than since April 2019, Microsoft has been linking Groups with its core SaaS productiveness functions, thereby limiting competitors out there for communication and collaboration merchandise and defending its market place in productiveness software program and its package-oriented mannequin from competing customized software program distributors,” the Fee wrote in a press launch.
The EU suspects that the Microsoft merger has given Groups a “diffusion benefit” over rival merchandise reminiscent of Slack. The Fee’s earlier view can also be that this might have been additional exacerbated by interoperability limitations between Groups’ rivals and Microsoft’s choices. “Conduct might intervene with Groups‘ rivals from competitors and, in flip, innovation, to the detriment of shoppers within the European Financial Space,” it added.
This might have an effect on extra than simply chat-based apps like Slack. As we famous earlier this yr, through the years video conferencing firms like Zoom have additionally been doubtlessly affected by Microsoft’s integration of Groups, an all-in-one product that provides customers messaging, voice and video calls, in addition to convention calls. Certainly, the EU famous that after the grievance was filed, Slack obtained one other grievance from Germany-based alfaview GmbH, a video conferencing supplier.
An official discovering of a breach of EU competitors guidelines might lead to Microsoft being fined as much as 10% of its annual international turnover. The bloc may also introduce authorized treatments if it decides that steps are wanted to revive competitors.
Microsoft has reached out for remark.
The assertion of objections opens a brand new part of the investigation wherein Microsoft will probably be requested to reply to the EU’s preliminary findings, so the ultimate final result can’t be predicted. There may be additionally no fastened timetable for the completion of the investigation by the EU authorities.
The Fee’s press launch famous that it had obtained a second grievance concerning Groups, made by a German firm referred to as alfaview GmbH, which it mentioned raised “related issues in regards to the distribution of Groups.” The continuing towards Microsoft will tackle complaints from Slack and alfaview.