The European Union considers that including Teams in Office 365 packages goes against the values promulgated by the European body. The fine could be 10% of their annual turnover, in addition to forcing them to make the appropriate changes to continue operating in this market.
It seems that the European Union’s regulatory framework is choking on big technology companies. As El Economista anticipates, Brussels could have put the spotlight on Microsoft, which would be abusing its position of power by including Microsoft Teams in all Office 365 and Microsoft 365 productivity packages for companies.
For the European Union, larger companies respecting existing regulations is vital to ensure that the appropriate conditions are in place to guarantee the competitiveness of all companies. An aspect that seems not to be respected by the Redmond-based company.
Undue advantage over rivals
Brussels began the investigation 11 months ago, after Slack filed a complaint considering that Microsoft was taking advantage of its position in the market, to the detriment of the already mentioned one.
“We are concerned that Microsoft may be giving its own Teams communications tool an undue advantage over its rivals by tying it to its popular business productivity suites. Preserving competition for remote communication and collaboration tools is essential because it drives innovation in these markets. If confirmed, Microsoft’s conduct would be illegal under our competition rules. “Microsoft now has the opportunity to respond to our concerns,” said Margrethe Vestager, Vice President of the Commission and Head of Competition.
In the investigation that has been carried out from Brussels prior to the publication of said information, the regulatory body understands that there are a series of indications that allow it to be considered that Microsoft is abusing its global dominant position. Especially in everything that has to do with the market for productivity applications for professional use.
Since 2019, the technology company has included Microsoft Teams in its suite of productivity tools for companies. However, it has been as a result of the interoperability limitations that are present in the current legal framework, that the problem has become even more visible.
A historic sanction
In the event that the suspicions are confirmed, Microsoft could be exposed to a historic sanction that would considerably reduce its accounts. Brussels would be in a position to impose a sanction of up to 10% of its business volume on the technology giant worldwide, not just in Europe.
Furthermore, the punishment would not end there. The European Union could also force Microsoft to immediately rectify its activity to stop violating the regulations that are authorized in community territory.
Although there is still a long way to go until reaching the final resolution, since Microsoft would now have time to defend itself against the accusations and prove that they are wrong, the European Union once again demonstrates how closely monitored the large technology companies that operate are. In our country.
