Microsoft Corporation will face more intense supervision by the Federal Cartel Office in the future. The Company, together with its subsidiaries, comes under extended monitoring of abuse of the law against restrictions of competition (Section 19a GWB). The Federal Cartel Office can use it to ban companies with “outstanding cross-market significance for competition” from engaging in anti-competitive practices, the federal authority announced on Monday.
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The statement said the decision applies to the entire company, not just individual services or products. Within the EU, Microsoft is already defined as a so-called gatekeeper and must follow Digital Markets Act (DMA) guidelines. However, this currently only applies to Windows operating systems and the LinkedIn network, explains Andreas Mundt, President of the Federal Cartel Office. The Federal Cartel Office’s findings mean there are now additional options for action: “Based on our decision, we can stop practices that jeopardize competition where the DMA does not apply,” Mundt said.
Development must be based on Microsoft
The company not only dominates the market with the Windows operating system, but also has a strong position in production software such as server operating systems and office products. When it comes to cloud, the company also plays a leading role with Amazon Web Services (AWS) along with Azure. Acquisitions and domestic developments also increased the range. The company benefits from its open system by integrating third-party offerings. The Federal Cartel Office argues, “Due to the assortment of complementary offers such as bundling, it retains a significant advantage over competitors that operate only in individual sub-markets.” “In addition, there is broad technical integration of products from the Microsoft ecosystem.”
Microsoft products became standard in business, administration, and private individuals and were an essential part of companies’ IT infrastructure. Accordingly, software developers are dependent on their development to be compatible with Microsoft products and must be based on the company’s framework terms. “Microsoft often plays a dual role, as the company not only sets the framework for third-party developers, but also acts as their competitor,” the Federal Cartel Office explains.
Other companies have already been identified
This decision is valid for five years. The Federal Cartel Office has not yet decided whether to initiate possible proceedings against Microsoft. Since the beginning of 2021, the Federal Cartel Office has been able to take prompt and more effective action against the behavior of large digital companies. Companies with excellent cross-market importance already include Alphabet/Google, Meta/Facebook, and Amazon. Apple should also be one of those companies. However, there is still a complaint regarding this in the Federal Court.
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