Microsoft and Apple could be fined 10% of their annual revenue by the EU
- 26 June 2024
- Posted by: Federica Montella
- Categories: eToro CopyTrader, Investing
The European Union has accused Microsoft of antitrust violations related to bundling the video conferencing app Teams within its Office suite.
These allegations mark the first such charges against Microsoft in over a decade.
The case raises questions about whether the company gained an “undue advantage” by integrating Teams into its popular productivity software.
The direct competitors of Teams such as Zoom, Slack and Salesforce will suffer the potential advantages of Microsoft Teams under the European Commission regulation rules about competition.
Brad Smith, Microsoft president, said: “Having unbundled Teams and taken initial interoperability steps, we appreciate the additional clarity provided today and will work to find solutions to address the commission’s remaining concerns.”
Brussels is also investigating other Big Tech companies.
On Monday, the European Commission accused Apple of hindering competition on its App Store, marking the first instance where EU regulators have brought charges against a Big Tech group under new digital regulations.
If proven guilty, Apple could be subject to a penalty of up to 10% of its worldwide annual revenue, potentially resulting in fines amounting to tens of billions of dollars.
The fines could escalate to 20% if the violation is repeated, according to the European Union.
Apple expressed confidence in its compliance.
