Microsoft Corp. is facing a formal complaint from the European Union (EU) over its Teams video-conferencing app, as regulators are not satisfied with the company’s attempts to address concerns. The EU’s antitrust enforcers are preparing a statement of objections to send to Microsoft in the coming months. This investigation stems from a complaint filed by Salesforce Inc.’s messaging platform Slack three years ago. Microsoft is also facing other complaints regarding its licensing practices and bundling of services with Windows.
Microsoft Facing Formal EU Complaint Over Teams Video App
Microsoft Corp. is facing a formal complaint from the European Union (EU) over its Teams video-conferencing app. The EU’s antitrust enforcers are preparing a statement of objections to be sent to Microsoft in the next few months. This investigation follows a complaint filed by Salesforce Inc.’s messaging platform Slack three years ago. In an attempt to address concerns, Microsoft proposed selling Teams separately from its business software package, but this did not satisfy regulators. Microsoft is also facing additional complaints related to its licensing practices and bundling of services with Windows.
Regulators Not Satisfied with Microsoft’s Proposal
Microsoft’s recent proposal to split its Teams app from its business software package and offer it to customers separately with an annual discount did not meet the regulators’ concerns. The European Commission, which is conducting the investigation, is preparing a statement of objections to be sent to Microsoft. This shows that the company’s attempt to avoid deeper scrutiny has fallen flat with the EU’s antitrust enforcers. The investigation was initiated following a complaint from Salesforce Inc.’s Slack platform.
Additional Complaints Filed Against Microsoft
Microsoft is facing at least two other complaints filed with EU regulators. One complaint, filed by a European cloud group with Amazon.com Inc.’s AWS among its members, accuses Microsoft of using unfair licensing practices to attract EU customers to its cloud infrastructure. Another complaint, filed by German cloud platform NextCloud GmbH in 2021, raises concerns about Microsoft bundling its OneDrive cloud system with Windows. These complaints add to Microsoft’s ongoing legal challenges in the EU.
Microsoft is also under investigation by the EU’s digital antitrust regulators, who are examining whether its Bing, Edge, and Advertising services should be subject to the bloc’s Digital Markets Act. This act sets out rules for major tech companies and their conduct in the digital market. Microsoft faces a range of challenges and investigations in the EU, which could have significant implications for its operations in the region.
