Zoom CEO urges FTC to probe Microsoft's Teams bundling, echoing EU antitrust concerns

Microsoft has undergone a series of structural changes in recent months, primarily due to the European Union's antitrust laws. Just a few days ago, we learned that the company will no longer compel the use of Edge in Windows Widgets or search results in Windows 11, in addition to its efforts to secure the exclusion of Bing from the EU's 'gatekeeper' list. These developments are accompanied by the company's plans to offer its Microsoft Teams online conferencing and collaboration service independently in Europe starting on October 1. This decision comes in the wake of an investigation by the European Commission in response to a complaint by Slack, to determine whether Microsoft's bundling of Teams with Microsoft 365 anti-competitive.

Today, Zoom CEO, Eric Yuan, has proposed a similar investigation in the United States, urging the Federal Trade Commission (FTC) to examine the issue. As many are aware, Zoom is one of the biggest competitors of Microsoft Teams and has recently introduced a multitude of AI-based features such as real-time collaboration 'Notes' and Meeting Summaries to compete with the advancements of the Redmond giant. This is why Zoom, along with Slack and other major alternatives to Teams, are so interested in the separation of these bundled services to ensure fair competition. The FTC has previously been involved in legal matters with Microsoft, including an attempt to halt the purchase of Activision Blizzard (although recent developments in this area favored Microsoft, at least in the US).

Zoom, a significant player in the online video conferencing industry since 2011, experienced substantial growth in 2020 due to the surge in remote work during the COVID-19 pandemic. However, the company has seen a decline in usage since then, leading to a 15% workforce reduction in 2023. The company is actively striving to remain relevant as an alternative to services like Microsoft 365 or Google Workspace, offering not only video meetings but also a full collaborative work suite with Zoom One. However, it appears that the separation of Microsoft Teams from Microsoft 365 and Windows is a crucial part of its strategy for success.