Microsoft Hit With EU Antitrust Criticism From German Rival Over Groups’ Inclusion to Workplace Bundle

Microsoft was hit with an EU antitrust criticism by German rival Alfaview on Thursday, the second to date over its bundling of video app Groups into its Workplace product, because the bloc’s regulator prepares to research the US tech big.

The US software program firm has been on the EU competitors enforcer’s radar since 2020 when Salesforce-owned workspace messaging app Slack complained concerning the tying of Groups with Workplace.

Alfaview, based mostly in Karlsruhe in south-western Germany and with a 500-strong workforce, stated it had filed an identical criticism to the European Fee.

Bundling each merchandise collectively provides Groups a singular aggressive benefit that’s not justified by efficiency and which rivals can not match, it stated.

This has a major and everlasting influence on competitors within the communication software program market, Alfaview continued.

“Tying Groups with the opposite purposes within the Microsoft 365 suite creates a multipolar distribution benefit for the US group,” its managing director and founder, Niko Fostiropoulos, stated in a press release.

Microsoft declined to touch upon Alfaview’s criticism. The Fee confirmed receipt of the criticism, saying it might assess it based mostly on its normal procedures.

Microsoft added Groups to Workplace 365 in 2017 without cost, with the app finally changing Skype for Enterprise.

The Fee is ready to launch an investigation into the transfer after Microsoft’s treatments fell brief, individuals acquainted with the matter advised Reuters earlier this month.

Microsoft, which has been fined a complete of two.2 billion euros ($2.5 billion or roughly Rs. 20,505 crore) within the earlier decade for practices in breach of EU competitors guidelines, has provided to chop the value of its Workplace product with out Groups, however regulators desire a greater discount, the individuals stated.

No formal investigation has been opened but, however Microsoft is topic to an off-the-cuff probe.

“We proceed to have interaction cooperatively with the Fee in its investigation and are open to pragmatic options that handle its issues and serve prospects nicely,” a Microsoft spokesperson stated.

Alfaview urged the EU antitrust watchdog to open a proper investigation, saying treatments provided by its US rival to the Fee had been inadequate. 

© Thomson Reuters 2023 

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