The antitrust investigation could lead to heavy penalties against Microsoft in case of an infringement

In a significant antitrust development, the European Union has formally accused Microsoft of breaching competition rules by allegedly unfairly bundling its Teams software with Office productivity applications. The European Commission announced Tuesday that the Microsoft’s integration of Teams into its Office 365 and Microsoft 365 is against competition rules and it limits consumer choice by giving an undue advantage to the product in the market.

The EU regulators claimed Microsoft's prior effort to remove Teams from its subscription packages last year was insufficient to allay their concerns. The 'Statement of Objections' released by the Commission highlights that users of Microsoft's SaaS productivity tools might not have had the option to decline purchasing Teams, which might have restricted competition from other platforms for collaboration and communication.

The antitrust investigation, still ongoing, could lead to heavy penalties against Microsoft in case of an infringement, such as fines of up to 10% of its global turnover. Microsoft addressed the allegations by stating that it is willing to work with EU authorities to identify ways to alleviate the Commission's worries. The verdict in this case might have an impact on how tech companies package and sell their services to both customers and businesses, potentially redefining the nature of digital competition in the European market.