Microsoft, a global tech giant, offers a range of services including productivity and business software, cloud computing, and personal computing. Teams, a part of Microsoft's offerings, is a cloud-based communication and collaboration tool that provides features like messaging, video meetings, file sharing, and integration with Microsoft's and third-party workplace tools.

The COVID-19 pandemic has accelerated the shift towards remote working and cloud-based software for communication and collaboration. This transition has led to the emergence of new market players and business models, offering customers the flexibility to use different types of software from various providers without the need for an in-house data center.

However, the Commission has expressed concerns that Microsoft might be abusing its market position in productivity software by restricting competition in the European Economic Area (EEA) for communication and collaboration products. According to a press release from the European Commission, the main concern is that Microsoft might be granting Teams an unfair distribution advantage by not allowing customers to choose whether to include access to Teams when subscribing to their productivity suites. This practice could limit the interoperability between Microsoft's productivity suites and competing offerings.

If these practices are proven, they may constitute anti-competitive tying or bundling, preventing other communication and collaboration tool providers from competing, which could be detrimental to customers in the EEA. Such behavior could breach EU competition rules, which prohibit the abuse of a dominant position.

The Commission will prioritize this in-depth investigation. However, the opening of a formal investigation does not predict its outcome.

This investigation was initiated following a complaint submitted by Slack Technologies, Inc. against Microsoft on 14 July 2020, alleging that Microsoft illegally tied Teams to its dominant productivity suites.

The Commission has informed Microsoft and the competition authorities of the Member States about the proceedings in this case. The duration of an antitrust investigation depends on various factors, including

• The complexity of the case
• The extent of cooperation from the companies concerned
• The exercise of the rights of defense

Margrethe Vestager, Executive Vice-President in charge of competition policy, emphasized the importance of ensuring competitive markets for remote communication and collaboration tools like Teams, which have become indispensable for many businesses in Europe. She stated that companies should be free to choose the products that best meet their needs, which is why the Commission is investigating whether Microsoft’s tying of its productivity suites with Teams may be in breach of EU competition rules.

For more information on the investigation, visit the Commission's competition website and look for the case number AT.40721.