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Why Microsoft is in the soup in Germany

Germany's competition watchdog classified Microsoft as a company with paramount cross-market significance, allowing for stronger action against it.

Published on: Oct 01, 2024 07:47 AM IST
Reuters |
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Germany's competition watchdog said on Monday that it had classified Microsoft as a "company with paramount cross-market significance for competition", meaning that it can take stronger action against the tech giant going forward.

Microsoft has been classified by Germany's competition authority as having paramount cross-market significance, enabling heightened scrutiny and potential bans on anti-competitive practices. This new classification also applies to other tech giants like Apple, Google, and Meta. (Reuters)
Microsoft has been classified by Germany's competition authority as having paramount cross-market significance, enabling heightened scrutiny and potential bans on anti-competitive practices. This new classification also applies to other tech giants like Apple, Google, and Meta. (Reuters)

"Microsoft's many products are ubiquitous and indispensable in companies, public authorities and private households," said Andreas Mundt, head of the Bundeskartellamt. "The Microsoft ecosystem is now more interwoven and stronger than ever before."

The cartel office said the new classification - also given to Apple, Google and Meta - meant that Microsoft would now come under more stringent supervision and could face bans on anti-competitive practices.

"We recognize our responsibility to support a healthy competitive environment and we will strive to be proactive, collaborative and responsible in working with the Bundeskartellamt," a Microsoft spokesperson said.

In June, Microsoft was hit with a hefty antitrust fine after the European Commission accused it of illegally linking its chat and video app Teams with its Office product, giving it an unfair advantage over rivals such as Slack.

(Reporting by Matthias Inverardi, Writing by Friederike Heine, Editing by Rachel More)

 
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