EU opens antitrust probe into Microsoft over Groups bundling

Silhouettes of computer customers are observed subsequent to a display projection of Microsoft emblem on this photograph representation.

Dado Ruvic | Reuters

Ecu Union regulators on Thursday opened an antitrust investigation into Microsoft’s bundling of its video and chat app Groups with different Place of work merchandise.

The Ecu Fee, the EU’s govt arm, mentioned that those practices would possibly represent anti-competitive habits.

It’s the first antitrust investigation via the EU into Microsoft in over a decade.

“The Fee is anxious that Microsoft would possibly grant Groups a distribution benefit via no longer giving shoppers the selection on whether or not or to not come with get right of entry to to that product once they subscribe to their productiveness suites and will have restricted the interoperability between its productiveness suites and competing choices,” the EU regulators mentioned on Thursday in a press free up.

In different phrases, the EU is anxious Microsoft isn’t giving shoppers the selection not to purchase Groups once they subscribe to the corporate’s Place of work 365 product. In doing so, Microsoft may well be preventing different firms from competing within the office messaging and video app house.

“Those practices would possibly represent anti-competitive tying or bundling and save you providers of alternative verbal exchange and collaboration gear from competing,” the Fee added.

Microsoft 365, up to now referred to as Place of work 365, is Microsoft’s set of instrument which contains workplace-geared apps like Phrase and Excel.

Antitrust investigations don’t have a self-imposed of entirety closing date. If Microsoft is located to be in breach of EU festival regulations, the U.S. tech large may face a positive of as much as 10% of its overall world annual turnover.

Slack raises issues

Issues over Microsoft on competitiveness grounds have been first raised in 2020, when Groups rival Slack submitted a grievance to the EU, wherein it alleged the Redmond tech large illegally tied Groups to its dominant productiveness programs, comparable to Microsoft 365. Slack, which is owned via Salesforce, has mentioned the transfer intended hundreds of thousands of customers have been pressured to put in Groups with out the power to take away it.

A Microsoft spokesperson mentioned, “We recognize the Ecu Fee’s paintings in this case and take our personal duties very severely. We can proceed to cooperate with the Fee and stay dedicated to discovering answers that may cope with its issues.”

Microsoft used to be final subjected to an EU antitrust probe in 2009, in a equivalent case over its former internet browser Web Explorer. The EU raised issues that festival used to be distorted via Microsoft tying Web Explorer to its Home windows running machine. Microsoft introduced therapies to the EU, committing to permit Home windows customers a number of rival internet browsers.

Extra lately, Microsoft’s proposed $69 billion acquisition of Activision Snow fall got here below EU scrutiny, on grounds that the deal would possibly distort festival within the console and cloud gaming marketplace. Microsoft introduced therapies to the EU on this case, resulting in regulators approving the deal in Might.

– CNBC’s Silvia Amaro and Ryan Browne contributed to this record.