Following the European Commission’s Statement of Objections against Microsoft for tying Teams with its 365 suite, the Information Technology and Innovation Foundation (ITIF), a leading think tank for science and technology policy, released a statement from Joseph V. Coniglio, Director of Antitrust and Innovation at ITIF’s Schumpeter Project on Competition Policy.
"The charges against Microsoft are yet another chapter in the European Union’s ongoing crusade against American technology companies using weaponized antitrust policy aimed at protecting competitors rather than competition, innovation, and consumers," Coniglio stated.
Coniglio argued that Microsoft's current market environment differs significantly from the 1990s. "Microsoft Office faces intense competition from Google Workspace and other rivals. In fact, according to some public estimates, Microsoft may have as little as a 30 percent market share worldwide—well below the 40 percent threshold typically applied to determine whether dominance is unlikely."
He further contended that Microsoft's actions have procompetitive justifications and questioned claims of consumer harm or Teams' dominance. "Salesforce’s Slack has a sizable market presence and recent assessments confirm that competitors like Zoom and Google Meet both have larger shares than Teams in most European markets."
Additionally, Coniglio noted Microsoft's proactive measures in response to the Commission's investigation. "Microsoft has already unbundled Teams and began enabling interoperability measures... This raises the question of whether a lawsuit was necessary to solve the Commission’s remaining concerns or if it wanted yet another headline."
In light of these developments, Coniglio suggested that American technology companies might reconsider their economic engagement with European markets. "It is only natural that American technology companies will continue to seriously consider whether it makes economic sense for them to bring their innovative products to European consumers."
Contact: Sydney Mack, [email protected]
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