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EU Set to Escalate Antitrust C...Sources familiar with the matter reveal that the European Commission is advancing with formal charges against Microsoft
Brussels is poised to intensify its antitrust battle against Microsoft, alleging that the tech behemoth is unfairly leveraging its dominance in the videoconferencing realm with Teams. The move underscores the European Union's continued crackdown on the market power wielded by tech giants. Sources familiar with the matter reveal that the European Commission is advancing with formal charges against Microsoft, citing apprehensions that the company's practices stifle competition within the sector. Despite Microsoft's recent overtures to forestall regulatory action, including pledges to disentangle Teams from other software packages globally, EU officials remain unconvinced of the adequacy of these measures in fostering a level playing field.
Rivals fear that Microsoft might prioritize compatibility with its own suite of products, while pricing strategies allegedly favor its offerings over alternatives. Moreover, concerns loom over the absence of data portability, impeding users' ability to transition away from Teams. While the timing of the charges remains imminent, Microsoft still holds the prospect of derailing the case through eleventh-hour concessions. Nevertheless, the company faces substantial penalties, with potential fines scaling up to 10% of its global annual turnover if found in breach of EU competition law.
Amid heightened scrutiny, Microsoft finds itself embroiled in multiple regulatory probes, including investigations into its alliance with OpenAI and its designation as a digital gatekeeper under the Digital Markets Act. Moreover, complaints from European cloud providers alleging anti-competitive practices further compound Microsoft's regulatory woes on the continent.