Whilst many of you might be aware of some of the charges and fines that Microsoft has faced from the European Union (EU) over the years (which has significantly impacted the company's operations and policies); what most people don't know is just how long the EU has 'had our backs' so to speak. Here is a timeline of what we are talking about:
2004: The Beginning of EU Scrutiny
Initially, the EU's focus was on the dominant position Microsoft held in the PC operating system market and its bundling practices. In 2004, the European Commission imposed a landmark fine of €497 million (approximately $613 million at that time) on Microsoft. The Commission ruled that Microsoft had abused its dominant position by bundling its Windows Media Player with the Windows operating system, thus hindering competition.
2008: The Browser Wars
In 2008, the European Commission charged Microsoft again, this time for tying its Internet Explorer browser to Windows. In 2009, Microsoft agreed to a settlement, which included offering a "browser choice" screen to European users, allowing them to select their preferred web browser.
2013: Compliance Failures
In 2013, Microsoft faced another fine of €561 million ($731 million) for failing to comply with the 2009 agreement to provide browser choice by bundling Internet Explorer (IE) with their Windows product.
2023: Office Bundled with Teams
In 2023, the European Commission launched an investigation into Microsoft's integration of Teams with its Office products (including Office 365 and Microsoft 365). The primary issue was whether this bundling practice gave Microsoft an unfair advantage over competitors in the market for communication and collaboration tools, such as Slack and Zoom. In response to these concerns, Microsoft announced in August 2023 that it would unbundle Teams from its Office suite in the European market starting October 1, 2023.
2024: Not Enough
In April 2024 Microsoft separated Teams from Office globally to try to resolve EU antitrust concerns, but the Commission said the action Microsoft had taken did not sufficiently address its concerns and that more changes are needed to restore competition.
What does this mean for everyone?
As Microsoft continues to face scrutiny, particularly regarding the cost of Office without Teams, the benefits to consumers remain a testament to the importance of robust antitrust enforcement. With the hope that continued pressure from the EU might push Microsoft for more substantial price reductions if the current prices are still deemed too high.
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