EU Accuses Microsoft of Breaching Antitrust Rules by Bundling Teams with Office Software 

The logo of Microsoft is seen outside it's French headquarters in Issy-les-Moulineaux, outside Paris, on May 13, 2024. (AP)
The logo of Microsoft is seen outside it's French headquarters in Issy-les-Moulineaux, outside Paris, on May 13, 2024. (AP)
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EU Accuses Microsoft of Breaching Antitrust Rules by Bundling Teams with Office Software 

The logo of Microsoft is seen outside it's French headquarters in Issy-les-Moulineaux, outside Paris, on May 13, 2024. (AP)
The logo of Microsoft is seen outside it's French headquarters in Issy-les-Moulineaux, outside Paris, on May 13, 2024. (AP)

EU antitrust regulators on Tuesday charged Microsoft of illegally bundling its chat and video app Teams with its Office product and say that recent moves by the US tech giant to unbundle the package were insufficient and more needed to be done. 

"Microsoft has breached EU antitrust rules by tying its communication and collaboration product Teams to its popular productivity applications included in its suites for businesses Office 365 and Microsoft 365," the European Commission said in a statement. 

"The Commission preliminarily finds that these changes are insufficient to address its concerns and that more changes to Microsoft's conduct are necessary to restore competition," it said, referring to Microsoft's unbundling of Teams from Office announced in recent months. 

The move by the EU competition watchdog was triggered by a 2020 complaint by Salesforce-owned competing workspace messaging app Slack. 

Teams was added to Office 365 in 2017 for free and subsequently replaced Skype for Business. Its popularity soared during the pandemic due in part to its video conferencing. 

Microsoft said it would work to find solutions to address EU regulators' concerns.  



Salesforce Gains as Software Firm Bets on AI Tools to Power Growth

The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights
The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights
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Salesforce Gains as Software Firm Bets on AI Tools to Power Growth

The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights
The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights

Shares of Salesforce gained more than 5% on Thursday as investors cheered the customer relationship management software maker's upbeat quarterly results and its artificial intelligence push to drive growth.

The company has been heavily investing to integrate its AI technologies into existing products, such as its messaging platform Slack, to enhance their capabilities and attract more customers.

"We continue to see Salesforce as an under-appreciated AI winner as its differentiated data and early success in creating/deploying GenAI agents," Reuters quoted Goldman Sachs analyst Kash Rangan as saying.

Wall Street was concerned that tempered cloud spending would affect Salesforce in a tough economy, but the software-as-a-service (SaaS) firm reported better-than-expected revenue, profit and margins in the second quarter.

Salesforce also raised its profit forecast for the year ending January 2025, as margins continue to expand, thanks to its restructuring efforts last year.

The stock is trading at 24.49 times that of Wall Street's profit expectations, compared with 52.11 for SaaS peer ServiceNow and cloud contact center firm Five9's 13.30.

Salesforce is set to add $14 billion to its market capitalization if premarket gains hold. The company's valuation stood at $248 billion as of Wednesday's close.

"We think these results alone are not good enough to drive a sustainable rally from here. For that, we need more catalysts, which could come with the new AI solutions," which are set to be showcased at its event Dreamforce and launched in October, Barclays analyst Raimo Lenschow said.

Some analysts believe that sustained growth in the coming quarters can come through customer support platform Agentforce, which is not yet commercially available.