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Microsoft has had to deal with various competition agencies in recent months. Once it seems that those from Redmond have resolved their differences with the CMA and the European Commission, there is still the stumbling block of making the FTC see reason, to which a new “ally” could now be added. The latest reports indicate that Germany could sue Microsoft for monopolistic practicesafter the FCO, the competition authority of the German country, has initiated an investigation procedure.
This has been pointed out by techrunch, which has reported on a statement issued by the president of the FCO, Andreas Mundt, in which they assure that they are beginning to investigate the possibility that practices that abuse the competition are being carried outdue to the broad digital ecosystem that Microsoft has, which affects markets such as operating systems and office software, cloud computing, video games, networking, Internet search and Artificial Intelligence applications.
Germany could sue Microsoft for monopoly
It is important to note that this case not directly related to the purchase of Activision Blizzard. The reasons why Germany could sue Microsoft cover a much broader spectrum than the one currently being investigated by the FTC, CMA or EC. In this specific case, the German body is carrying out an investigation of all the practices of those from Redmond as a whole, to which it could apply its own measures, thanks to the regulation that is made in the Bavarian country.
With Windows and its Office products, Microsoft has long held a very strong position in the field of operating systems and office software. On this basis, the company has continuously expanded its product range for both business and consumer customers.
More recently, we have seen a sharp increase in the importance of cloud services Azure and OneDrive, which are often linked to other Microsoft applications, and the resounding success of Teams, a software for video conferencing and collaborative work. In addition, Microsoft is also active in other areas, such as gaming with its Xbox, professional networking with its LinkedIn service, or Internet search with its Bing search engine.
More recently, the company has drawn attention with the integration of AI applications. In light of all this, there are good reasons to consider whether Microsoft is of paramount importance to competition in all markets. Such a conclusion would allow action at an early stage and prohibit potential anti-competitive practices.
Although the FCO already has several similar procedures open against companies like Apple or Google, the truth is that they emphasize that the Microsoft “still” does not mean they are going to take formal action against those in Redmond. It is simply a preliminary study to see if the practices being carried out by Redmond are contrary to the interest of users, for which Germany could sue Microsoft.
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However, the agency does issue a clear warning, stating that “If the complaints or other information suggest that there are indications that Microsoft is engaged in potentially anti-competitive practices, a separate decision will have to be issued in this matter, also in consultation with the European Commission and possibly other competition authorities.”. Therefore, those of Redmond must be prepared to face another possible demandin case the FCO finds something you don’t like.