Slack Technologies Inc (NYSE:WORK) filed a competition complaint against Microsoft Corporation (NASDAQ:MSFT) with the European Commission. The workplace-communication software maker said it launched legal proceedings against Microsoft over its Team software, its meeting software. There has been growing scrutiny of major tech companies, especially regarding their market share and influence.
Team is Slack’s main competitor
Slack has accused Microsoft of launching its Team software, which directly competes with Slack to its popular Office 365 productivity suite. Through its spokeswoman, the commission confirmed the compliant receipt and promised to access it according to its standards.
In a statement, Slack said Microsoft has illegally integrated its Team software in its market dominant Office suit. This way, Microsoft has forced millions to install Team software. Besides, Microsoft has been accused of blocking the app’s removal and hiding its true costs from customers.
Teams App by Microsoft is Slack’s biggest competitors in the workplace communication software industry. In wake of the COVID-19 pandemic, many companies and businesses have closed offices and gone online. It has been a booming businesses both for Slack and Microsoft’s Team. In its latest report, Microsoft said it added 12 million active users on Team in one week. During the same period, Slack announced that it added 7,000 paid customers since February. As of October 2019, Slack had 12 million active users.
Microsoft is banking on Team to beat Slack in the workplace apps marketplace. The tech giant has adapted various measures to increase Team’s user base. These include offering free version, integrating Team into its Office 365 Business Premium, and Office 365 E3. This has dealt a blow to Slack stoke as many investors are going for Microsoft due to its huge finance base.
Amazon accused of investing in startups then launching competing products
Microsoft has been accused of investing in startups only to turn around and launch competing products. The company has been accused of using acquiring startups, gaining access to their financial details, internal operations, and then launching strikingly resembling products. Startups like Nucleus, LivingSocial, and Ubi have accused Microsoft of gaining access to their internal operations then develop competing products.