In a recent development, the European Commission has initiated a formal investigation into Microsoft's practices concerning its communication and collaboration product, Teams. The investigation aims to determine whether Microsoft has violated EU competition rules by tying Teams to its widely used business suites, Office 365 and Microsoft 365.
Microsoft, a global tech giant, offers a range of services including productivity and business software, cloud computing, and personal computing. Teams, a part of Microsoft's offerings, is a cloud-based communication and collaboration tool that provides features like messaging, video meetings, file sharing, and integration with Microsoft's and third-party workplace tools.
The COVID-19 pandemic has accelerated the shift towards remote working and cloud-based software for communication and collaboration. This transition has led to the emergence of new market players and business models, offering customers the flexibility to use different types of software from various providers without the need for an in-house data center.
However, the Commission has expressed concerns that Microsoft might be abusing its market position in productivity software by restricting competition in the European Economic Area (EEA) for communication and collaboration products. According to a press release from the European Commission, the main concern is that Microsoft might be granting Teams an unfair distribution advantage by not allowing customers to choose whether to include access to Teams when subscribing to their productivity suites. This practice could limit the interoperability between Microsoft's productivity suites and competing offerings.
If these practices are proven, they may constitute anti-competitive tying or bundling, preventing other communication and collaboration tool providers from competing, which could be detrimental to customers in the EEA. Such behavior could breach EU competition rules, which prohibit the abuse of a dominant position.
The Commission will prioritize this in-depth investigation. However, the opening of a formal investigation does not predict its outcome.
This investigation was initiated following a complaint submitted by Slack Technologies, Inc. against Microsoft on 14 July 2020, alleging that Microsoft illegally tied Teams to its dominant productivity suites.
The Commission has informed Microsoft and the competition authorities of the Member States about the proceedings in this case. The duration of an antitrust investigation depends on various factors, including
Margrethe Vestager, Executive Vice-President in charge of competition policy, emphasized the importance of ensuring competitive markets for remote communication and collaboration tools like Teams, which have become indispensable for many businesses in Europe. She stated that companies should be free to choose the products that best meet their needs, which is why the Commission is investigating whether Microsoft’s tying of its productivity suites with Teams may be in breach of EU competition rules.
For more information on the investigation, visit the Commission's competition website and look for the case number AT.40721.
Generals Counsel weigh in on how they can train their senior staff on legal risks and compliance matters.
Join our host and CEO, Pieter Gunst, as he dives into the career journey of Jessica Vander Ploeg, VP, Legal Operations at Micro Focus.
In-house legal professionals talk about how much time they normally take off with their unlimited PTO policy.
As a hiring manager, you know finding the right person for each position is an arduous task that involves a considerable amount of work even before you post the role. After pinning down the particulars of the role you and your company are looking to fill, the next step is finding the perfect match! Here are a few tasks/mindsets to understand and account for before posting the role.
In-house legal professionals share their thoughts on signature authority policy.
This new examination represents a shift from the traditional bar exam by emphasizing skills-based knowledge over content memorization.
Company Secretarial software is used by in-house legal departments to keep on top of corporate records and other filings required to maintain compliance with various regulations. This type of software is also used to share information with and collect signatures from company officers, shareholders and other stakeholders.
Pierson Ferdinand, a new law firm founded by ex-FisherBroyles leaders, launches with a significant number of high-profile legal professionals. This strategic move marks a notable industry development.
Published weekly on Friday, the Legal.io Newsletter covers the latest in legal, talent & tech.