Antitrust strikes again! The EU accuses Microsoft of bundling software sales in violation of competition rules

According to the financial news app Smart Finance, Microsoft (MSFT.US) may face a huge fine as the European Union regulatory agency accuses the company of abusing its market dominance by bundling the Teams video conferencing app with other commercial software.

The European Commission issued a so-called statement of objections, alleging that Microsoft's practice of bundling Teams with its Office 365 and Microsoft 365 software packages violates EU competition rules.

EU regulators stated that since at least 2019, Microsoft's actions have protected its dominant position in the market and given Teams a competitive advantage over its rivals. The regulatory agency also added that the limited interoperability between Teams and competing software has further fueled this unfair advantage.

EU Competition Commissioner Margrethe Vestager said on Tuesday, "Maintaining competition in remote communication and collaboration tools is crucial as it also fosters innovation in these markets."

Fines for violating antitrust laws can reach up to 10% of a company's global revenue, although they rarely reach that level.

So far, Microsoft has tried to avoid a thorough investigation of its actions but has failed to convince regulators. However, the company has pledged to consider making further concessions to avoid penalties.

During the pandemic, the usage of Microsoft Teams video app surged as lockdown measures around the world forced millions of people to work remotely and maintain social distancing. According to Statista, the global daily users of the application increased from around 2 million in its first year of operation in 2017 to 300 million by 2023 in a very short period.

Critics argue that Microsoft has been able to leverage its influence in PC software to make Teams the most convenient choice for remote workers already using software like Word and Excel.

Over the years, Microsoft has been battling with antitrust regulators in the US and Europe as complaints have been made about unfair product bundling and preventing competitors from using desktop Windows software.

Overall, Microsoft has been fined 22 billion euros for violating EU competition rules, but in recent years, the company has largely avoided stricter antitrust scrutiny. In comparison, Google has faced most of the criticism for abusing its market dominance.

Microsoft's $69 billion acquisition of game developer Activision Blizzard has drawn attention from global competition regulators. After the EU initially issued a formal warning about the deal, they eventually made concessions to approve it.

Additionally, the EU antitrust regulators have recently accused Apple (AAPL.US) of violating the EU's new Digital Markets Act with its App Store. This accusation could lead to Apple facing significant fines