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Antitrust Concerns: Brussels Readies Charges Against Microsoft
Brussels is on the verge of issuing fresh antitrust charges against Microsoft, citing worries that the tech giant is engaging in practices that undermine competitors to its videoconferencing app, Teams. The European Commission, based on information from three knowledgeable sources, is moving forward with formal allegations against the world’s most valuable publicly listed technology corporation over suspicions of impeding competition within the sector.
Microsoft presented concessions last month in an effort to evade regulatory action, including an extension of a proposition to separate Teams from other software such as Office, not only in Europe but globally. Nevertheless, individuals familiar with the matter conveyed that EU officials remain unsettled, asserting that the company’s efforts were insufficient in fostering market equity.
Rivals are apprehensive that Microsoft may configure Teams to function more harmoniously with its proprietary software than competing applications. Furthermore, the absence of data portability is a significant apprehension, making it challenging for current Teams users to transition to alternative platforms.
This action by the European Commission signifies an escalation in a case originating in 2020 subsequent to a formal grievance filed by Slack, presently owned by Salesforce, against Microsoft’s Teams platform. This development ruptures a decade-long period of tranquility between EU regulators and the American tech giant, following a sequence of competition investigations culminating in 2013. At that time, the EU imposed a €561 million penalty on Microsoft for failing to adhere to a ruling regarding the bundling of Internet Explorer with the Windows operating system.
Impending Charges
Sources familiar with the commission’s stance revealed that charges could be brought forth within the coming weeks. Representatives of Microsoft’s rivals and the commission are scheduled to convene this week for deliberations concerning the case, signifying the imminent preparation of charges against the tech behemoth.
Despite this, there remains the possibility that Microsoft could present last-minute concessions that might derail the EU’s litigation, or the commission could opt to postpone or dismiss the charges altogether. If found in violation of EU competition law, Microsoft could face fines amounting to up to 10% of its worldwide annual revenue. However, the company opted not to comment and instead referred back to an earlier statement emphasizing its commitment to engaging with the commission and exploring beneficial solutions for customers and developers in Europe.
Regarding the speculation on impending actions against Microsoft, the commission chose to decline comment on the matter.
Heightened Scrutiny and Ongoing Investigations
The move against Microsoft transpires during a period of intensified examination of the company’s operations. The EU is concurrently investigating whether Microsoft’s $13 billion partnership with ChatGPT creator OpenAI infringes upon competition regulations. Furthermore, Microsoft is among a select group of tech entities, alongside Google and Meta, identified as “gatekeepers” under the new Digital Markets Act, mandating special obligations while conducting business operations in Europe.
In addition, Microsoft has encountered objections from European cloud computing providers who express concerns about the company’s purported exploitation of its dominant stature in the sector to coerce users into acquiring its products, consequently stifling competition from nascent start-ups across Europe.
Through these developments, the regulatory landscape appears poised to subject Microsoft to rigorous scrutiny as authorities strive to ensure a fair and competitive marketplace in the tech sector.
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