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Microsoft Adjusts Office-Teams Pricing to Avoid EU Antitrust Fine

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Microsoft is making changes to the pricing structure of its Office product bundled with Teams, aiming to avoid a potential EU antitrust fine, according to sources familiar with the matter. This adjustment comes in response to complaints from competitors, including Salesforce-owned Slack and German rival alfaview, who raised concerns about Microsoft’s practice of bundling its chat and video app, Teams, with Office.

Teams, added to Office 365 in 2017, became particularly popular during the pandemic as a video conferencing tool, replacing Skype for Business. Microsoft’s new pricing strategy, introduced in 2023, unbundles Teams from Office, offering Office without Teams at a lower price (2 euros cheaper) and selling Teams as a standalone service for 5 euros per month. The aim is to create more competitive pricing, enabling rivals to offer their products at more attractive rates.

The European Commission has been seeking feedback from industry stakeholders, with a deadline for responses this week, before deciding whether to launch a formal market test. Microsoft has also reportedly proposed improved interoperability terms to help competitors in the space.

Both the EU competition authority and Microsoft declined to comment. The Commission’s investigation could lead to a fine of up to 10% of Microsoft’s global annual revenue, which could be significant, considering the company’s history with EU antitrust cases, including a 2.2 billion euro fine in the early 2000s for bundling products. If the EU accepts Microsoft’s offer, it could clear the path for other investigations, such as those involving Apple and Google.

AMD’s $4.9 Billion Acquisition of ZT Systems Faces EU Antitrust Review

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The European Union’s antitrust regulators are set to make a decision by March 12 on U.S. chipmaker AMD’s $4.9 billion acquisition of server manufacturer ZT Systems. AMD announced the acquisition in August 2024, which aims to strengthen its portfolio of artificial intelligence (AI) chips and hardware to better compete with rivals such as Nvidia.

ZT Systems specializes in AI infrastructure, serving some of the world’s largest hyperscale computing companies, including Microsoft and Meta Platforms. The EU’s preliminary review could result in the deal being approved, either with or without conditions. However, if the European Commission has significant concerns, it could initiate a four-month investigation into the deal.

This acquisition is part of AMD’s strategy to expand its presence in the AI sector, where it faces intense competition from Nvidia, which currently dominates the AI chip market.

 

Allegro’s Ceneo Sues Google for $568 Million Over Antitrust Claims

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A subsidiary of Polish e-commerce giant Allegro, Ceneo, has filed a lawsuit against Alphabet (Google’s parent company), Google Ireland, and Google LLC, seeking damages of 2.33 billion zlotys ($567.6 million). The lawsuit, filed on Monday, claims that Google’s preferential treatment of its own price comparison service in search results has harmed Ceneo’s business by undermining competition.

Ceneo, which operates a popular online price comparison service in Poland, argues that Google’s practices have caused substantial financial losses. According to Allegro, the damages comprise 1.72 billion zlotys for the losses sustained by Ceneo, along with about 615 million zlotys in interest payments, accruing from 2013 to November 29, 2024. Ceneo also seeks statutory interest on the total amount from the date of the lawsuit until the damages are paid.

In response, Google rejected the claims, asserting that its “Shopping remedy” has been successful in supporting a variety of retailers, brands, and comparison shopping sites across Poland and Europe. A Google spokesperson noted that the company was carefully considering its options.

This lawsuit is linked to a previous European Union antitrust case, where Google was fined $2.7 billion for abusing its dominance in the search engine market to favor its own price comparison service. The EU’s ruling in that case also aimed to curb Google’s market power and encourage fair competition in the sector.

In addition, the U.S. Department of Justice has called for Google to divest its Chrome browser and prevent the company from re-entering the browser market for five years, in an effort to limit its control over the digital ecosystem.