The European Commission, the executive arm of the European Union, has formally charged Microsoft with antitrust violations, alleging that the company illegally bundled its Teams communication platform with its dominant Office 365 and Microsoft 365 productivity suites. This marks the first time in over a decade that the EU has leveled such charges against the Redmond-based tech giant, signaling a significant escalation in the regulatory scrutiny of Big Tech practices.
The Commission’s “Statement of Objections,” sent to Microsoft on Tuesday, outlines concerns that bundling the products gives Teams an unfair distribution advantage and restricts customer choice. Regulators argue that this practice has harmed competing enterprise communication software, such as Slack, which is owned by Salesforce. The investigation was initially triggered by a complaint filed by Slack in 2020.
In an attempt to preemptively address these concerns, Microsoft began selling its software suites without Teams in Europe last year and extended this unbundling globally in April 2024. However, EU antitrust chief Margrethe Vestager stated that these changes may be insufficient to restore competition in the market. “We are concerned that Microsoft may have given its own communication product Teams an undue advantage over competitors, by tying it to its popular productivity suites for businesses,” Vestager said.
If found guilty, Microsoft could face a fine of up to 10% of its global annual turnover, which could amount to tens of billions of dollars. The company would also likely be required to implement more substantial remedies to ensure a level playing field for competitors. This case is seen as a major test of the EU’s resolve to curb the market power of large technology companies and could set a precedent for future antitrust actions involving software bundling.
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