The EU is accusing Microsoft of violating antitrust rules with the bundling of its Teams app.
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00:00I'm Conway Gittins reporting from the New York Stock Exchange.
00:02Here's what we're watching on the street today.
00:05Stocks attempt to recover from the Nasdaq's biggest single-day
00:08decline in more than two months, largely driven
00:11by Nvidia and the tech sector.
00:13Investors will digest earnings from economic bellwether FedEx
00:16ahead of the all-important PCE inflation
00:18data expected Friday.
00:21In other news, big American tech companies
00:23remain in the sights of the European Commission.
00:25The European regulatory body alleges
00:27Microsoft violated antitrust rules with its, quote,
00:31abusive bundling of its cloud-based communication
00:34tools Teams with its more popular productivity
00:37tools, which include Office 365 and Microsoft 365.
00:41If the findings are confirmed, Microsoft
00:43could face a fine of up to 10% of its global revenue, which
00:46was $212 billion in 2023.
00:49The EU investigation was sparked by complaints
00:52from Teams competitors Slack and AlphaView.
00:55Microsoft preemptively unbundled Teams
00:58and Microsoft 365 in 2023.
01:01But the EU said the move failed to address antitrust concerns,
01:05and more changes from Microsoft are
01:07needed to restore competition.
01:09In a statement, Microsoft thanked the commission
01:12for additional clarity and said it
01:14would work to address the remaining concerns.
01:17The announcement follows news the commission is also
01:19investigating Apple for a potential violation
01:22of its newly implemented Digital Markets Act,
01:25in addition to ongoing investigations of meta
01:28and alphabet-owned Google.
01:30And that'll do it for your daily briefing
01:32from the New York Stock Exchange.
01:34I'm Conway Gittens with The Street.