EU reportedly gearing up to investigate Microsoft over Teams antitrust complaints from Slack

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https://www.neowin.net/news/eu-reportedly-gearing-up-to-investigate-microsoft-over-teams-antitrust-complaints-from-slack/

Reuters has reported that the European Commission (EC) is looking to launch an investigation against Microsoft for purported anti-competitive practices related to its Teams software.

The basis for this scrutiny is a complaint filed by Slack in 2020 in which it stated that bundling Teams with the Microsoft 365 suite of products forces it to be installed on many machines while "hiding the true cost to enterprise customers". It urged the regulator to force Microsoft to remove Teams from its Microsoft 365 suite and offer it separately at "fair" commercial prices.

According to the report, the EC sent out a new set of questionnaires last month, which is a sign that it's considering ramping up its investigation against Microsoft. Two sources familiar with the matter noted that: "The Commission is looking at (Microsoft's) interoperability and bundling but more detailed this time. They are looking for information that allows them to define remedies." "They are preparing the ground for an investigation."

EU reportedly gearing up to investigate Microsoft over Teams antitrust complaints from Slack

The European Commission (EC) is reportedly preparing to launch an antitrust probe into complaints made against Microsoft Teams by competitor Slack. The two firms have clashed many times in the past.

www.neowin.net

 

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Slack’s complaint revolved around the idea that users don’t actually know how much they are paying for Microsoft Teams when they get it bundled in with a batch of other products and without a proper breakdown of costs. This makes it pretty much impossible for Slack to compete with Teams when Microsoft 365 subscribers seemingly get it for ‘free’. According to Slack, the complaint goes beyond this issue too:

“But this is much bigger than Slack versus Microsoft – this is a proxy for two very different philosophies for the future of digital ecosystems, gateways versus gatekeepers (…). Slack offers an open, flexible approach that compounds the threat to Microsoft because it is a gateway to innovative, best-in-class technology that competes with the rest of Microsoft’s stack and gives customers the freedom to build solutions that meet their needs. We want to be the 2% of your software budget that makes the other 98% more valuable; they want 100% of your budget every time.”

It seems that Slack’s argument holds some weight as, according to a Reuters report, Microsoft wants to settle the case with the EU. The report states that Microsoft has made a preliminary offer of concessions to “try to allay the EU competition enforcer's concerns”.

However, there are no details about what those concessions could be. Cold they relate to separating Microsoft Teams out of the Microsoft 365 subscription package or offering more transparent pricing structures, which would make it clearer just how much of the Microsoft 365 subscription will be going to pay for Teams. Either of those concessions would offer a fairer landscape for smaller players like Slack to compete in.

Microsoft wants to settle with the EU on Microsoft Teams antitrust case - gHacks Tech News

When you subscribe to Microsoft 365, you get a whole host of productivity apps and programs that can help you work on many different types of projects. You also get to use […]

www.ghacks.net

 

[Gandalf_The_Grey]

Microsoft to Stop Including Teams With Office to Avoid Antitrust Probe

Microsoft has agreed to stop bundling its Microsoft Teams app with its Office suite to avoid an EU antitrust investigation, the Financial Times is reporting today. Slack, the main competitor to Microsoft Teams had previously filed an antitrust complaint against Microsoft before the European Commission.

Back in 2020, Slack claimed that Microsoft including Teams with Office was anti-competitive. “Microsoft is reverting to past behavior. They created a weak, copycat product and tied it to their dominant Office product, force installing it and blocking its removal, a carbon copy of their illegal behavior during the ‘browser wars’”, said David Schellhase, General Counsel at Slack three years ago.

According to two sources familiar with Microsoft’s decision, the company is now planning to give companies purchasing Office the choice to get Teams or not. However, “the mechanism on how to do this remains unclear,” the report reads.

In just six years, Microsoft Teams has become a true juggernaut in the enterprise communication space, and the app crossed 280 million active users earlier this year. Slack, on the other hand, had over 10 million active users back in 2019 and the company hasn’t updated this number since then. The app was acquired by Salesforce for $27.7 billion back in 2020, which was when the popularity of Slack, Teams, and Zoom exploded due to the pandemic.

In a statement shared with The Financial Times, Microsoft said it’s ready to address concerns from the European Commission. “We are mindful of our responsibilities in the EU as a major technology company. We continue to engage cooperatively with the commission in its investigation and are open to pragmatic solutions that address its concerns and serve customers well,” the company said.

Microsoft to Stop Including Teams With Office to Avoid Antitrust Probe

Microsoft has reportedly agreed to stop bundling its Microsoft Teams app with its Office suite to avoid an EU antitrust investigation. Slack had previously filed an antitrust complaint against Microsoft before the European Commission.

www.thurrott.com

 

[Zero Knowledge]

Microsoft will just buy Slack in the end and then no more fines or lawsuits.

 

[Gandalf_The_Grey]

And again ?
EU may reportedly launch an antitrust probe into Microsoft's Office suite

The European Commission's antitrust watchdog is reportedly considering launching an antitrust investigation into Microsoft following unsuccessful remedial discussions regarding the integration of Teams with the Office suite. According to people who know the situation, negotiations between Microsoft and the EU watchdog to find a solution have reportedly reached a snag, increasing the chances of a probe.

For those unaware, the root of the probe is a complaint filed by Slack in 2020 stating that Microsoft hides the "true cost" from enterprise customers when it bundles Teams with the Microsoft 365 suite of products and forces it to be installed on machines.

It then urged the regulator to force Microsoft to remove Teams from its Microsoft 365 suite and offer it separately at "fair" commercial prices. The EC sent questionnaires to concerned parties to gain more insight into the matter.

Microsoft initiated talks with the European Commission last year to avoid an investigation. As part of their proposed solution, Microsoft recently offered to reduce the price of its Office product by excluding the Teams app.

However, the European Commission is reportedly seeking a more substantial price reduction from the tech giant. Currently, the EU executive has declined to comment on the ongoing situation.

EU may reportedly launch an antitrust probe into Microsoft's Office suite

The EU watchdog is considering an antitrust probe into Microsoft's integration of Teams with the Microsoft 365 suite. The investigation stems from a complaint filed by Slack in 2020.

www.neowin.net

 

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Microsoft may be facing an antitrust probe from the European Union as soon as next week. That's according to an unconfirmed report that claims the EU's regulatory body, the European Commission (EC), will be investigating whether Microsoft's bundling of its Teams video conference software with Microsoft 365 and its Office apps is anti-competitive in nature.

The report comes from the Financial Times, citing unnamed sources. There have been other rumors about this investigation from other media outlets recently, but this is the first time we have heard of an actual timeline of when the formal probe from the EC will actually being, FT adds that once the investigation does start, formal charges against Microsoft could happen sometime this fall.

Back in April, FT reported Microsoft was thinking about spinning off the Teams product away from Microsoft 365 as a way to appease the EC's concerns. However, today's report claims that Microsoft and the EC have yet to agree on whether Teams should be separated from Microsoft 365 just in the EU, or whether Teams will be available as a separate product worldwide.

Microsoft reportedly will get hit with an EU probe next week over bundling Teams with Office

The unconfirmed report claims Microsoft was unable to offer the type of concessions to the EU's executive body, The European Commission, that would keep it from launching an antitrust investigation.

www.neowin.net