The European Union (EU) continues to increase its scrutiny of US tech giants, with Microsoft and Apple being the latest targets. The EU’s antitrust authority, the European Commission (EC), has charged Microsoft with illegally bundling its Teams software with other proprietary business software, including Office 365 and Microsoft 365. This practice, known as “tying”, is considered a violation of the Treaty on the Functioning of the European Union (TFEU), which prohibits the abuse of dominant market positions. Violations can result in fines of up to 10% of a company’s worldwide annual revenue. For Microsoft, this could mean a significant penalty, given its global revenue in 2023 totaled $212 billion.
Microsoft has responded to the charges, stating that it has already untethered Teams from some of its other software products. The company appreciates the clarity provided by the EC and is working to address the remaining concerns.
In a similar move, the EC has also charged Apple with violating the EU’s recently enacted Digital Markets Act (DMA). The iPhone maker is accused of illegally preventing software developers from informing customers about how to access content outside the App Store. Apple has defended its practices, stating that it believes its plan complies with the law.
These actions are part of the EU’s ongoing efforts to regulate personal data, social media content, and the dominance of Big Tech. The bloc has also been proactive in adopting new laws, suing to block mergers, and preparing comprehensive legislation to regulate artificial intelligence. The EU’s aggressive regulatory stance, which dates back to its creation in 1993, has resulted in some early victories, including the blocking of a proposed $42 billion merger between GE and Honeywell in 2001, despite the merger having received approval in the US.
Read more: finance.yahoo.com