Slack Files EU Antitrust Complaint Against Microsoft Teams

Workplace Messaging Giant Alleges Anti-Competitive Practices

Slack Technologies has escalated its rivalry with Microsoft by filing a formal antitrust complaint with the European Union, accusing the tech behemoth of anti-competitive behavior through the bundling of its Teams communication platform with Microsoft 365.

The Core Allegations

• Forced Integration: Slack claims Microsoft illegally ties Teams to its dominant Office productivity suite
• Installation Practices: Allegations include force-installing Teams for millions of users and blocking removal options
• Pricing Concerns: Slack argues Microsoft obscures the true cost to enterprise customers

Regulatory Response and Company Statements

The European Commission’s competition division confirmed receipt of the complaint, stating: “We confirm that we received a complaint by Slack against Microsoft. We will assess it under our standard procedures.”

Slack’s Position

Jonathan Prince, VP of Communications and Policy at Slack, emphasized:

“This isn’t just about Slack versus Microsoft - it’s about two competing visions for digital ecosystems. We offer an open, flexible approach that serves as a gateway to best-in-class technology, while Microsoft maintains a closed, gatekeeper model.”

Microsoft’s Defense

The Redmond-based company responded:

“We created Teams to meet evolving workplace needs, combining collaboration with video connectivity. The market has embraced Teams, especially during COVID-19. We remain committed to innovation and customer choice in how they use our products.”

Historical Context and Market Dynamics

The Evolution of a Rivalry

The conflict dates back to 2016 when Microsoft launched Teams, prompting Slack’s famous sardonic newspaper ad welcoming the competition. Since then:

• Teams Growth: Skyrocketed from newcomer to 75 million daily active users (April 2020)
• Slack’s Position: Reported 12.5 million daily actives in March 2020
• Pandemic Impact: Both platforms saw significant user growth during COVID-19 remote work surges

Regulatory Landscape

The EU complaint comes at a pivotal moment:

• EU Antitrust History: Microsoft faced €500M fine in 2004 for similar bundling practices
• Current Climate: EU lawmakers considering expanded digital market intervention powers
• Parallel Cases: Microsoft recently criticized Apple’s App Store policies as anti-competitive

Business Implications

Competitive Pressures

• Market Position: Microsoft’s enterprise sales channels give Teams significant distribution advantages
• Financial Stakes: Slack shares dropped after recent earnings, making competitive pressures more acute
• Strategic Move: EU known for aggressive antitrust enforcement, making it a logical venue for Slack’s complaint

The Bigger Picture

This case represents more than a corporate dispute - it highlights fundamental questions about:

1. Fair competition in cloud-based productivity tools
2. The role of dominant platforms in shaping digital ecosystems
3. Appropriate regulatory responses to tech market dynamics

As the EU evaluates Slack’s complaint, the outcome could have far-reaching implications for how enterprise software markets function in the digital age.

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