EU competition charges to be brought against Microsoft for Teams software

The European Commission is gearing up to issue new antitrust charges against tech giant Microsoft, specifically targeting its videoconferencing app Teams. The move comes as part of ongoing efforts by EU regulators to curb the market dominance of big tech companies.

According to sources familiar with the matter, the Commission is set to file a formal charge sheet against Microsoft over concerns that the company is stifling competition in the sector. Microsoft had previously offered concessions to avoid regulatory action, such as unbundling Teams from other software like Office, but EU officials remain unsatisfied with the proposed measures.

Rivals of Microsoft have raised concerns that the company may prioritize its own software compatibility with Teams over other apps, setting pricing in a way that discourages users from choosing alternative videoconferencing options, and lacking data portability for users to switch to other platforms.

This escalation in the case against Microsoft marks the end of a decade-long truce between the tech giant and EU regulators, following previous competition probes that resulted in fines against the company. The timing of the charges is expected to be in the coming weeks, with the possibility of last-minute concessions from Microsoft or a delay in the charges by the Commission.

If found guilty of breaching EU competition law, Microsoft could face fines of up to 10% of its global annual turnover. The company has stated its commitment to engaging with the Commission and exploring solutions that benefit customers and developers in Europe. The Commission, however, declined to comment on the matter.

In addition to the antitrust charges, Microsoft is also under investigation for its alliance with OpenAI and its designation as a “gatekeeper” under the new Digital Markets Act, highlighting the increased scrutiny on the company’s activities in Europe.