EU Charges Microsoft with Violating Antitrust Laws: What You Need to Know

European Union Charges Microsoft with Antitrust Violations, Following Similar Action Against Apple

The European Union (EU) is ramping up its efforts to hold US tech giants accountable, with Microsoft being the latest target of antitrust charges. European regulators have accused the tech giant of violating competition laws by illegally bundling its Teams software with other proprietary business software.

The European Commission (EC) has alleged that Microsoft’s practice of tying Teams with Office 365 and Microsoft 365 constitutes an abuse of its dominant market position. If found guilty, Microsoft could face fines of up to 10% of its global annual revenue, which amounted to $212 billion in 2023.

Microsoft president Brad Smith has responded to the charges by stating that the company has already taken steps to separate Teams from its other software products and is working to address the EC’s concerns. This move comes just a day after Apple was hit with similar charges for allegedly violating the EU’s Digital Markets Act by restricting software developers from directing users to content outside the App Store.

The EU’s actions against Microsoft and Apple are part of a broader push to regulate Big Tech companies and promote fair competition in the digital market. With a history of taking a more aggressive stance on business regulation compared to the US, the EU has implemented laws like the GDPR, Digital Markets Act, and Digital Services Act to curb the dominance of tech giants.

Microsoft will now have the opportunity to respond to the EC’s objections before a final decision is made. While there won’t be a trial, companies can appeal the EC’s determination to the European Court of Justice. This ongoing battle between the EU and US tech giants highlights the increasing regulatory scrutiny in the tech industry. Stay tuned for more updates on this developing story.