Microsoft May End Up In Yet Another EU Antitrust Investigation Because Slack Had Issues With Teams

Microsoft could soon face yet another antitrust investigation in the European Union (EU). The company has reportedly failed to reach an agreement with the EU Antitrust Commission regarding its Teams platform.

The EU had previously warned and fined Microsoft for bundling two or more products together. The Windows OS maker may have to defend itself because it bundled Microsoft Teams with Microsoft Office 365 as a complimentary add-on.

Slack Drags Microsoft Into EU Antitrust Probe For Bundling Teams With Office 365

Microsoft has offered Skype for individuals and businesses for a long time. However, Skype for Business was gradually retired in favor of Microsoft Teams.

Microsoft Teams is a feature-packed collaboration and office productivity as well as a remote communications platform. It rivals Google Workspace, Zoom, Slack, and several other platforms that offer similar functionalities and features.

Microsoft added Teams to Office 365 in 2017 as a complimentary add-on. The platform eventually replaced Skype for Business.

Slack, which is owned by Salesforce, objected to this inclusion. The company alleged that its rival had unfairly integrated workplace chat and video app Teams into its Office product.

In a statement given to Financial Times in 2020, Slack said that Microsoft, "illegally tied its Teams product into its market-dominant Office productivity suite, force installing it for millions, blocking its removal, and hiding the true cost to enterprise customers".

The EU Antitrust Commission Has Rejected Microsoft's Remedial Steps

The EU Antitrust Commission took cognizance of the issue and asked Microsoft to respond. As a remedial measure, Microsoft suggested it would offer a cheaper version of Office 365 for users who chose not to use Teams.

The EU wants Microsoft to reduce the price of the Office 365 subscription without Teams. The price differentiation between the two versions of the remote collaboration and office productivity suite must be wider to ensure a level playing field and give consumers more choices, the EU watchdog insisted.

A Microsoft spokesperson has indicated that the company is actively cooperating with the Commission and the company is, "open to pragmatic solutions that address its concerns and serve customers well."

It is quite possible that Microsoft could submit a new remedial proposal before the EU watchdog to stave off the investigation. However, the company will have to hurry if it wants to avoid the investigation from starting.