The European Union accuses Microsoft of antitrust violations over Teams

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Brussels has accused Microsoft of anti-competitive behavior by bundling its Teams app with its Office suite, in the first antitrust charges against the technology group in more than a decade.

The European Commission on Tuesday handed the world's most valuable public company an indictment outlining concerns that Microsoft gave video conferencing app Teams an “undue advantage,” hurting rivals like Slack and Zoom.

These are the biggest accusations Brussels has made against Microsoft, apart from control of the merger, since the group's confrontation with the United States and the European Union over Windows, which began more than 20 years ago. This historical issue also centered on Microsoft bundling or “linking” its various software products.

The latest case follows a fierce battle with regulators over Microsoft's $75 billion acquisition of Activision Blizzard last year, and comes as the company faces scrutiny over its alliances with AI startups including OpenAI.

“We are concerned that Microsoft may give its communications product teams an undue advantage over competitors by linking them to its popular business productivity suites,” said Margrethe Vestager, the EU's executive vice-president responsible for competition policy. “If confirmed, Microsoft's conduct would be unlawful under our competition rules. Microsoft now has the opportunity to respond to our concerns.

In April, Microsoft issued concessions aimed at trying to avoid regulatory action, including expanding plans to separate Teams from other software like Office outside of Europe. However, officials do not believe that this move was not enough to enable competition in the market.

In response to the new accusations, Microsoft President Brad Smith said: “After dismantling Teams and taking initial steps for interoperability, we appreciate the additional clarity provided today and will work to find solutions to address the committee's remaining concerns.”

Brussels said the new charges do not “prejudge the outcome” of the investigation. Microsoft is seeking to settle the case to avoid official accusations that it is violating the law and a potentially large fine of up to 10 percent of its annual global revenue, according to people familiar with the company's thinking.

The move comes as Microsoft faces increasing scrutiny of its activities. Regulators are examining the company over its $13 billion partnership with OpenAI, and Brussels is considering whether to launch a full investigation. The group is also facing complaints about what some competitors say are unfair licensing agreements for cloud computing.

Brussels is also eyeing other big tech companies. The European Commission, the EU's executive arm, on Monday accused Apple of stifling competition in its App Store, the first time EU regulators have brought charges against a wide range of technology companies under the new digital rules.