Microsoft is facing the prospects of a European Union (EU) antitrust investigation in the near future, according to people familiar with the matter. This comes after an attempt by the US software giant to provide a remedy to the EU watchdog in order to avoid an investigation appears to have been unsuccessful. This dispute was sparked by Salesforce-owned workspace messaging app Slack in 2020. Slack claimed that Microsoft had unfairly integrated their workplace chat and video app, Teams, into their Office product, which was made available for free in 2017 with the aim of eventually replacing Skype for Business.

As part of attempting to prevent a possible investigation, Microsoft offered to reduce the price of Office without Teams app. However, the European Commission appears to be seeking a deeper price cut than what was offered by Microsoft; declining to comment on the matter. Microsoft, meanwhile responded to the investigation by saying that they continue to engage cooperatively with the Commission and are “open to pragmatic solutions that address its concerns”.

In the event that Microsoft is found to be in breach of the EU antitrust rules, they could face a fine of up to 10% of their global turnover. Talks are still ongoing between the EU watchdog and Microsoft, with the U.S. software giant still attempting to improve its remedy and convince the Commission that their proposed solution meets consumer interests. Microsoft has already been fined 2.2 billion euros ($2.4 billion) by the EU for practices that breach antitrust rules over the last decade. So far, it appears as though the U.S. software giant will have a difficult time convincing the Commission to accept their proposed remedy.
Source: Reuters