Renowned tech giant Microsoft is now facing serious allegations from the European Commission, with a possible fine of up to $6 billion on the horizon. The company is accused of unfairly profiting by bundling its Teams application with the globally popular Microsoft Office suite.
European Commission Targets Microsoft After Similar Actions Against Google
In recent years, the European Commission has made headlines for imposing stringent regulations on major tech firms like Google. Now, Microsoft has come under scrutiny. The Commission alleges that offering the internal communication platform Teams along with Office packages constitutes unfair competitive practices.
Slack Leads the Charge Against Microsoft
As you might know, Microsoft’s modern office suite, Office 365, is available for purchase in packages, whether for individual use or corporate. In both instances, the package includes Microsoft’s prominent communication app, Teams. Competitor Slack argues that Microsoft is violating competition rules by bundling its communication app with Office 365, hindering other applications from being freely chosen by consumers.
What’s Next for Microsoft?
With the European Commission taking these serious complaints into account, a decisive stance has been taken. Following preliminary investigations, the Commission has sent a formal statement of objections to Microsoft, requesting a defense.
Looking ahead, Microsoft faces a critical junction. The company has already denied the allegations and will need to formulate and submit a comprehensive defense. Failure to defend adequately, or if their defense is rejected, could lead to severe repercussions.
Given the Commission’s history of strict penalties in such cases, they could impose a fine up to 10% of Microsoft’s annual revenue. Considering Microsoft’s revenue last year was $62 billion, this could mean a staggering fine of approximately $6.2 billion.
What are your thoughts on this investigation into Microsoft? Do you think including Teams in the Office packages constitutes unfair competition? Don’t forget to share your views in the comments section below. Write this as well.
