"EU Antitrust Law Risk"… MS Stops Bundling Teams with Office

Microsoft (MS) reportedly stopped the so-called 'bundling' practice of automatically installing the video conferencing and messaging application Teams for Office software users. This move is seen as a preemptive response after the competitor Slack raised concerns, increasing the likelihood of an antitrust investigation by the European Union (EU).

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On the 24th (local time), major foreign media outlets reported, citing multiple sources, that MS recently took this action. MS had been installing the Teams program, which enables video calls, when users subscribed to Office 365 software programs such as Word and Excel. Since many global companies use Office 365, MS's bundling inevitably impacts competitors providing video conferencing and messenger services.

In 2020, Slack, a competitor, raised the issue with the EU, claiming MS's practice might violate antitrust laws. When the EU began related procedures, MS responded accordingly. Slack stated, "We requested the EU to act as a neutral arbiter to ascertain the facts and enforce the law."

Slack's complaint came amid the rapid expansion of remote and work-from-home arrangements due to the COVID-19 pandemic. According to global market research firm Fortune Business Insights, the video conferencing service market size is expected to grow from $7.02 billion in 2022 to $17.05 billion by 2030, with an average annual growth rate of 11.9%.

This is not the first time MS has faced antitrust issues. In 2008, MS was criticized for bundling the Internet Explorer web browser with its Windows operating system (OS). At that time, MS adopted a method linking users to a site where they could choose their browser instead of pre-installing one. However, MS violated this, resulting in a fine of €561 million (approximately 830 billion KRW) from the EU.

MS stated, "We continue to cooperate with the EU's investigation" and added, "We are working to address regulators' concerns and provide good services to our customers."

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