German rival Alfaview filed an EU antitrust complaint against Microsoft (MSFT.O) for bundling its video app Teams into its Office product.
This marks the second complaint received by Microsoft over the issue, and the EU regulator is now gearing up to investigate the US tech giant.
Since 2020, the US software company has been under the scrutiny of the EU competition enforcer due to complaints from the Salesforce-owned workspace messaging app Slack regarding the bundling of Teams with Office.
Alfaview, a German company with 500 employees, has also lodged a similar complaint with the European Commission.
Alfaview argued that combining both products provides Teams with an unparalleled competitive edge that is not warranted by their performance, giving them an advantage that competitors are unable to replicate.
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According to Alfaview, this situation has a considerable and enduring effect on competition within the communication software market.
“Tying Teams with the other applications in the Microsoft 365 suite creates a multipolar distribution advantage for the U.S. group,” its managing director and founder, Niko Fostiropoulos, stated in a statement.
Microsoft has not commented on Alfaview’s antitrust complaint. The European Commission acknowledged receiving the complaint and will assess it following standard procedures.
In 2017, Microsoft integrated Teams into Office 365 for free, replacing Skype for Business. As Microsoft’s remedies were insufficient, the Commission is planning to investigate the matter.
Microsoft has faced fines totaling 2.2 billion euros in the past for violating EU competition rules. Although no formal investigation has been initiated, the company is currently under an informal probe. Regulators are seeking a larger price reduction for the Office product without Teams.
“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,” said a Microsoft spokesperson.
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