When you sign up for Microsoft 365, you gain access to a wide range of productivity applications and tools that can assist you in working on various projects. Along with these, you can utilize the communication platform Microsoft Teams. This aspect has led to a complaint from the rival communication platform Slack, which caught the attention of EU regulators.
The crux of Slack’s complaint centers around the fact that users might not be fully aware of the actual cost of Microsoft Teams when it is bundled with other products without a clear breakdown of expenses. This situation makes it challenging for Slack to compete with Teams, as Microsoft 365 subscribers seemingly receive it at no extra cost. According to Slack, the complaint extends beyond this single issue:
“But this is much bigger than Slack versus Microsoft – this is a proxy for two very different philosophies for the future of digital ecosystems, gateways versus gatekeepers (…). Slack provides an open, adaptable approach that poses a threat to Microsoft because it serves as a gateway to innovative, top-notch technology that competes with Microsoft’s suite and enables customers to create customized solutions that meet their requirements. We strive to be the 2% of your software budget that enhances the value of the remaining 98%; they strive for 100% of your budget each time.”
Evidently, Slack’s argument has substance since a report from Reuters indicates that Microsoft is inclined to settle with the EU. The report mentions that Microsoft has put forth an initial offer of concessions to “address the concerns of the EU competition regulator.”
However, the specific details about these concessions remain undisclosed. They could potentially involve separating Microsoft Teams from the Microsoft 365 subscription bundle or introducing clearer pricing structures, which would elucidate the portion of the Microsoft 365 subscription allocated to Teams. Any of these concessions would create a more equitable playing field for smaller competitors such as Slack.
While it is clear that Microsoft is seeking to prevent the EU from launching a formal antitrust investigation into the matter, the effectiveness of this approach remains to be seen.
Thank you for choosing to read Ghacks. This article about Microsoft’s potential settlement with the EU regarding the Microsoft Teams antitrust case was first seen on gHacks Technology News.
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