Source: AFP
Germany’s anti-cartel authority said on Monday it had put US tech giant Microsoft under closer scrutiny for any possible abuse of its market position.
The Federal Cartel Office said it had determined that Microsoft is “of the utmost importance for competition in all markets”, a move that will allow the watchdog to take action and ban “anti-competitive practices”.
Microsoft, along with Apple, Amazon, Google parent Alphabet and Meta, fall under enhanced surveillance made possible by Germany’s competition law, which came into force in 2021.
The act allows the watchdog, known in German as the Bundeskartellamt, to intervene earlier, particularly against the world’s tech giants.
“Microsoft’s many products are ubiquitous in companies, authorities and private households and have become indispensable,” said Bundeskartellamt president Andreas Mundt.
The company has been dominant with its Windows operating system “for many years,” he said, and has built a very strong presence for its Office products and other software.
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Microsoft has also significantly developed its Azure cloud platform and is increasingly using artificial intelligence, including through its Copilot AI assistant and partnerships such as a tie-up with ChatGPT developer OpenAI.
“Today the Microsoft ecosystem is stronger and more closely interconnected than ever before,” said Mundt.
Microsoft’s financial strength and broad reach have also allowed it to quickly establish strong positions in new markets, the statement added, citing as examples the video and messaging app Teams, the Xbox game console and the professional networking platform LinkedIn.
The watchdog emphasized that its latest decision “applies to Microsoft as a whole, not just to individual services or products.”
In a response, Microsoft said it recognizes its “responsibility to support a healthy competitive environment.”
“We will try to be proactive, cooperative and responsible in working with the Bundeskartellamt,” a Microsoft spokesperson said.
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Big tech companies have faced increasing scrutiny around the world in recent years over their dominant positions as well as their tax practices.
The European Commission has already launched an investigation into Microsoft’s video and messaging app Teams.
Microsoft tried to assuage EU concerns by disconnecting the teams in Europe before expanding the policy worldwide in April.
But in June, the Commission said the changes weren’t enough, saying Microsoft broke EU antitrust rules by bundling Teams with the popular Office suite.
Source: AFP
