Microsoft is likely to face an EU antitrust investigation in the coming months after remedy discussions with the EU watchdog to avert such a move appear to have hit a roadblock, people familiar with the matter said.
Microsoft, which has been fined EUR 2.2 billion in the
previous decade for practices in breach of EU competition rules, including
tying or bundling two or more products together, found itself in the EU
crosshairs after a complaint by Salesforce-owned workspace messaging app Slack
in 2020.
Microsoft added Teams to Office 365 in 2017 for free, with
the app eventually replacing Skype for Business.
Slack alleged that its rival had unfairly integrated
workplace chat and video app Teams into its Office product.
Microsoft kicked off talks with the European Commission last
year in a bid to stave off an investigation. It recently offered to cut the
price of its Office product without its Teams app.
The European Commission has been seeking a deeper price cut
than that offered by the U.S. software giant, the people said.
The EU executive declined to comment.
A Microsoft spokesperson said: "We continue to engage
cooperatively with the Commission in its investigation and are open to
pragmatic solutions that address its concerns and serve customers well." ©
Reuters