German regulator launches antitrust proceedings against Microsoft

Germany’s antitrust regulator, the Bundeskartellamt, said on Tuesday that it has begun examining whether US tech giant Microsoft "is of paramount significance for competition across markets".

The regulator said the existence of a digital ecosystem which extends across various markets can be an indication that a company holds such a position.

"It is often very difficult for other companies to contest the positions of power associated with this," it said.

Bundeskartellamt president Andreas Mundt said: "With Windows and its Office products Microsoft has had a long-standing and very strong position with regard to operating systems and office software. Based on this, the company has continuously expanded its product range both for business customers and consumers.

"More recently, we have seen a strong increase in the importance of the cloud services Azure and OneDrive, which are often linked to other Microsoft applications, and the resounding success of Teams, a software for video conferences and collaborative 2 working.

"In addition, Microsoft is also active in other areas, including gaming with its Xbox, career networks with its service LinkedIn or internet searching with its search engine Bing. Most recently, the company has attracted attention with the integration of AI applications."

As a result, Mundt said there are "good reasons" to examine whether Microsoft is of paramount significance for competition across markets.

"Such a finding would allow us to take action at an early stage and prohibit possible anti-competitive practices," he said.