Slack files anti-competitive complaint vs Microsoft in EU

Workplace chatting service Slack has filed a complaint in the EU against Microsoft, accusing the software company of anti-competitive behaviour. It also reported 122,000 paid customers, up 28 per cent from when the company went public in April 2019. Slack still faces tough competition, particularly from Microsoft's Teams software.

Workplace chatting service Slack has filed a complaint in the EU against Microsoft, accusing the software company of anti-competitive behaviour. Slack said Wednesday Microsoft illegally bundles Microsoft Teams messaging product, which is similar to Slack, into Office 365, its package of email and other widely-used business software. Slack says Microsoft forces companies to install it for millions and blocks its removal.

Microsoft Corp. didn't immediately respond to an emailed request for comment. Slack Technologies Inc., which went public in 2019, has been growing rapidly. It reported USD 201.7 million in sales in its February-April quarter, up 50 per cent from the same time last year. It also reported 122,000 paid customers, up 28 per cent from when the company went public in April 2019.

Slack still faces tough competition, particularly from Microsoft's Teams software. Slack last month announced an expanded partnership with Amazon's cloud computing division, an attempt to join forces with Microsoft's chief rival. It more recently announced it is buying Rimeto, which creates detailed staff directories. The European Commission will review the complaint and decide whether to open a formal investigation.

If the European Commission decides to investigate, Microsoft could potentially face huge penalties. The European Union's powerful competition commissioner, Margrethe Vestager, who has been at the vanguard of the global movement to rein in big technology companies, has slapped Google with multiple antitrust fines totalling nearly USD 10 billion, which the company is appealing. Last month the commissioner opened twin investigations into Apple's mobile app store and payment platform over concerns that its practices distort competition, following a complaint filed by music streaming service Spotify.