The European Commission charged Microsoft on Tuesday for unlawfully connecting its chat and video program Teams with its Office suite, which may result in large antitrust penalties. The EU competition watchdog's most recent move, which comes two decades after Microsoft's previous EU sanction, was prompted by a 2020 complaint from Salesforce-owned competitor office messaging tool Slack.

Highlights:

• The European Commission charged Microsoft for unlawfully bundling Teams with its Office suite.
• Microsoft could face fines up to 10% of its annual global revenue if found guilty.
• Microsoft has unbundled Teams and is working to address the Commission's concerns, but more changes are needed.

The European Commission, which oversees EU competition, claimed that Teams had received a distribution edge and that competitors were further hampered by restrictions that prevented them from interacting with Microsoft's products.

EU antitrust commissioner Margrethe Vestager said in a statement that "preserving competition for remote tools for collaboration and communication is essential as it also fosters development on these markets."

Two decades ago, the US IT giant was fined 2.2 billion euros ($2.4 billion) by the EU for connecting, or bundling, two or more goods together. If proven guilty of the antitrust violations revealed on Tuesday, it may face fines equal to as much as 10% of its annual global revenue.

The Commission said that additional adjustments were required to restore competition and that Microsoft's actions did not adequately address its concerns.

Brad Smith, President of Microsoft, restated remarks made earlier in the month on the company's commitment to fixing the problem.

Smith stated, "We appreciate the additional clarification provided today and will work to find ways to address the Commission's remaining concerns. We have unbundled Teams and taken initial steps toward interoperability."

In order to restore a free and fair choice, Salesforce President and Chief Legal Officer Sabastian Niles encouraged the Commission to take immediate action toward a binding and effective solution.

Alfaview, a German competitor and complaint, likewise applauded the Commission's accusation against Microsoft.In 2017, Teams was a free addition to Office 365, taking the role of Skype for Business. Video conferencing contributed to its meteoric rise in popularity during the epidemic, but competitors said Microsoft had an unfair edge by combining its products.

In an attempt to allay EU antitrust worries, Microsoft unbundled Teams from Office in April and made it simpler for competitors to use its products. However, according to insiders, this move was unlikely to satisfy authorities.