Last week in Europe, a complaint filed to threaten Microsoft’s new ability to avoid regulatory scrutiny. There no second thoughts on it. Microsoft is one of the most prominent tech elites that provided its size, stock market value, and wealth.
What makes the software giant different?
Nothing is surprising in knowing that the tech giant has stood apart from Google, and Facebook is the fact that the tech world has so far escaped the antitrust scrutiny. Currently, Slack Technologies is known for its chat and collaboration software.
The software company whose chat and collaboration software has become a crucial part of millions of employees at many companies Slack accuses Microsoft and hopes to change the scrutiny structure.
Why Slack accuses Microsoft?
Last Wednesday, Slack technologies had filed a complaint with European commission against Microsoft accusing the tech giant of using its market power. The company had earlier stated that Microsoft hadn’t left any stones unturned in crushing its rivals.
Furthermore, Slack accuses Microsoft claiming that it has tied its collaboration software, including Microsoft Teams, to its core suite of productivity. Along with software, the company has also linked Microsoft Office tools, including Word, Excel, PowerPoint, and Outlook. Lastly, Slack also contends Microsoft the bundling tactic as it forms a part of a pattern of anticompetitive behavior.
Slack took steps:
Jonathan prince vice president of communications and policy at Stack had revealed a statement stating that Slack has threatened Microsoft’s hold on business email. It indicates that Slack has threatened Microsoft’s dominance on enterprise software.
Though Slack’s complaint is just at the primary step currently, soon European commission will make a decision on the formal investigation. In the last few years, the European regulators have taken actions against large companies who violate antitrust laws.
Slack accuses Microsoft and its impact:
Furthermore, both state and federal regulators in the United States are investigating if any company has genuinely broken any laws. Next week the chief executives of tech giants, including Apple and Facebook, will testify before Congress.
As per European rules, the complaint made by Slack isn’t made public currently. In a news conference, Slack’s general counsel representative David Schellhase had said that the company has further demanded to remove Teams from office. The company will sell the product at a fair price separately.
On all the accusations, Microsoft had commented that the company aims to offer the best of innovation but a wide variety of choices too. The company had further stated that it looks forward to providing additional information to the European Commission. It also is willing to answer all the queries posted by the commission.
Slack- Microsoft’s minute thrifts:
Back in the 1990’s Slack and Microsoft conformation has some echoes of the internet browser competition. The browser war had resulted in an antitrust case against Microsoft. The lawsuit was filed in the United Nations, and it was found that the company had consistently violated the nation’s antitrust laws. Additionally, Europe was also not in favor was Microsoft.
Earlier, the Internet browser was known as the layer of software, which was the gateway to online computing. The browser was so powerful that developers could write and run software on it. It was the dominant technology of the personal computer era.
Apart from this, the browser was the rival platform. Microsoft’s enemy Netscape Communications, who then recognized as the commercial pioneer of the browser software.
Current status of Slack:
Currently, Slack is known as the gateway to online work, as many employees and individuals prefer writing and running software on it. Additionally, it is a nascent challenge to Microsoft. Today one of the major platforms is an online cloud software. Currently, teams integrated into Microsoft’s Office 365 cloud suite.
As per Michael Cusumano, a professor at the Sloan School of management at Massacheuttus Institue of Technology, online collaboration platforms and tools play a crucial role. They are as essential as smartphones and computers.
As per some industry analysts, it is uncertain whether the software program, including Slack, could emerge as a genuine business threat to Microsoft. Now Microsoft has positioned its teams as all in one stop for calls, chats, online video meetings, and collaborations. Above all, these teams work perfectly with Microsoft software.
The demand for teams highest where online work done, and it becoming a platform for Microsoft.
Comparing Microsoft and Slack’s revenue in the current quarter:
With an increase in the adoption of collaboration technology, Slack has complained about the antitrust law violation. Due to coronavirus induced shutdowns slack, Zoom and Microsoft have experiencing enormous demands as the significant work done from home.
Back in April, as per some surveys, it concluded that Microsoft’s quarter financial results had 75 million Teams users daily. The figure was double the previous months. Last week Microsoft had reported a 13 percent jump in revenue in the quarter that ended in June.
The companies operating has enhanced by 8 percent to $13.4 billion. There is a drastic increase in the company’s sales and earning per share, surpassing the estimates given by Wall Street.
Ideally, Slack established in 2014, has also enjoyed an instant growth in the current year. The previous month Slack had reported a 50 percent jump in its revenue. The company has at least 12,000 paying customers.
The criminal accusations on Microsoft:
The general counsel of Slack, Mr. Schellhase, had accused Microsoft of returning to its previous behavior. In the federal browser case, the illegal trying claim made by Slack not resolved. Additionally, it found that Microsoft engaging in a wide range of unlawful tactics to thwart competition with threats and contract restrictions.
Though appeals court had held those claims but had sent the tying request for reconsiderations to the lower court, in the Bush administration, the case that bought Clinton Administration was settled. Furthermore, Mr. Prince, the company’s vice president for the policy had stated that Slack contends that bundling Teams with the office is a clear violation of European law.