Microsoft hit with antitrust violation warning in EU over bundling of Groups
This morning the European Fee issued a Assertion of Objections to Microsoft for violating antitrust guidelines by bundling Groups into its SaaS subscription platform Microsoft 365, which additionally consists of merchandise like Phrase, Excel, PowerPoint, Outlook, and OneDrive.
“The Fee is anxious that, since no less than April 2019, Microsoft has been tying Groups with its core SaaS productiveness functions, thereby proscribing competitors in the marketplace for communication and collaboration merchandise and defending its market place in productiveness software program and its suites-centric mannequin from competing suppliers of particular person software program,” the European Fee wrote in a assertion.
They argue that by bundling Groups into Microsoft 365 with its different generally used SaaS merchandise, Microsoft has given Groups a distribution benefit.
The European Fee first began investigating Microsoft on this situation in July 2023, following a criticism from Slack, a Groups competitor. Shortly after, Microsoft introduced it might begin unbundling Groups from Microsoft 365 in EU markets beginning in October 2023. After which, in April of this yr, Microsoft introduced it might unbundle Groups from Microsoft 365 in every single place.
Nonetheless, in its assertion the European Fee stated “these adjustments are inadequate to handle its issues and that extra adjustments to Microsoft’s conduct are essential to revive competitors.”
Microsoft now has the chance to assessment the fee’s investigation file, reply in writing, and request a listening to to current their case. If the fee then concludes Microsoft continues to be infringing on the foundations, it could possibly prohibit the conduct and superb Microsoft as much as 10% of its annual worldwide turnover. There isn’t any deadline for finishing the investigation, in keeping with the fee.
Microsoft’s president Brad Smith stated in an announcement: “Having unbundled Groups and brought preliminary interoperability steps, we recognize the extra readability supplied as we speak and can work to seek out options to handle the fee‘s remaining issues.”
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