Background on the Case
In 2020, Slack, a Salesforce subsidiary, filed an antitrust complaint against Microsoft, potentially leading to a substantial fine for the US tech giant. The European Union’s antitrust regulators have now proposed a solution from Microsoft to avoid such penalties.
Microsoft’s Offer
Lower Office Prices: Microsoft has proposed selling its Office suite without Teams at a reduced price, according to the EU’s antitrust regulators.
- Discounted Office Suites: European customers will be able to purchase Office 365 and Microsoft 365 suites without Teams at a lower price compared to those that include Teams.
- Data Portability: Users can extract their messaging data from Teams and utilize it in competing solutions.
Enhanced Interoperability: Microsoft’s proposal includes better access to interoperability for rivals’ services and products, allowing specific functionalities and web app integration (Word, Excel, PowerPoint) within their own offerings.
- Access to Microsoft Products: Competitors can effectively integrate with certain Microsoft products for specific functionalities.
- Integration in Productivity Apps: Competitors’ products can be prominently integrated into Microsoft’s primary productivity applications.
Regulatory Process and Timeline
The European Commission will now gather opinions from rivals and customers before deciding on Microsoft’s proposal. Interested parties have one month to submit their comments.
Salesforce, Slack’s parent company, has stated that it will thoroughly examine Microsoft’s offer.
Key Questions and Answers
- What is the main issue? The case stems from a 2020 antitrust complaint filed by Slack (now owned by Salesforce) against Microsoft, which could have resulted in a significant fine.
- What did Microsoft propose? Microsoft offered to sell Office suites without Teams at a lower price and provide better interoperability access for competitors.
- What does enhanced interoperability mean? Competitors can integrate their products more effectively with Microsoft’s services and productivity apps, allowing for better functionality and web app integration.
- What is the timeline for this process? The European Commission will collect feedback from interested parties over the next month before making a decision.
Impact on European Customers and Competitors
This proposal aims to provide European customers with more affordable Office suite options and increased data portability from Teams. For competitors, better interoperability with Microsoft’s services and productivity apps will foster a more open ecosystem.
