Microsoft Ready For ‘Additional Steps’ To Avoid EU Antitrust Action

Microsoft is ready to take “additional steps” to address the European Commission’s concerns about its bundling of Teams and Office.

Microsoft’s President, Brad Smith, spoke to a group of journalists in Brussels this week about the company’s intention to assuage EU antitrust regulators who had been investigating whether Microsoft was “abusing its market position” by bundling Teams with Office since last year.

Last month, sources told The Financial Times that the European Commission would announce new antitrust charges against Microsoft and potentially issue a formal statement of objections as soon as this summer. Smith expressed no surprise at the possibility of receiving such a document, noting that Microsoft has proactively taken steps to mitigate regulatory concerns.

Smith said:

We now have taken the kinds of steps that I think people were looking for us to take to provide Teams separately from other parts of our Office or M365 suite. But I expect that we’ll need to take some additional steps.”

During his visit to Brussels, Smith discussed artificial intelligence with senior EU officials, including Competition Commissioner Margrethe Vestager, and participated in events focused on AI. A spokesperson for the Commission confirmed that Smith and Vestager’s meeting covered the EU’s ongoing competition investigations into Microsoft and recent advancements in AI technology.

As well as being investigated for its bundling of Teams and Office, Microsoft is also being probed by the European Commission, UK’s Competition and Markets Authority (CMA) and US’s Federal Trade Commission (FTC) because of its relationship with AI giant OpenAI.

What’s The Story So Far?

The European Commission initiated a formal probe into Microsoft’s practice of bundling its products following a complaint by Slack in 2020.

In response to the scrutiny, Microsoft separated its platforms in Europe last year. Then, in April of this year, the company expanded this unbundling globally, citing “feedback” from the European Commission. This move was widely interpreted as Microsoft’s strategy to preemptively address antitrust concerns before any formal ruling.

However, these moves did not assuage the European Commission, which intended to press on with issuing charges. It remains to be seen whether the “additional steps” that Smith cites will have a material impact.