The Bundeskartellamt has determined that Microsoft Corporation based in Redmond, USA, is an undertaking of paramount significance for competition across markets. Microsoft and its subsidiaries are thus subject to extended abuse control pursuant to Section 19a of the German Competition Act
The foundation of Microsoft's digital ecosystem is its extensive cross-market range of products, especially for business customers, which are highly interconnected. This portfolio addresses a wide range of customer needs and includes numerous products that have set the global market standard for many years. Microsoft has long been the dominant player in the market for PC operating systems with its Windows OS. Additionally, the company has secured strong market positions in server operating systems (Windows Server) and productivity software (Office suite, Microsoft 365).
Microsoft has continually expanded its portfolio through acquisitions, internal development, and by adding new features to its core products. The integration of third-party offerings has also enhanced the appeal of its generally open system. By providing a broad array of complementary products, Microsoft gains a significant edge over competitors that only operate in specific submarkets. Another advantage is the technical integration between products within Microsoft's ecosystem.
Leveraging its established market strength, Microsoft has not only entered new markets but also rapidly secured leading positions. For instance, it quickly achieved success with Teams, a platform for video conferencing and collaboration. Microsoft has also expanded into new sectors such as gaming (with Xbox) and professional networking (through LinkedIn), where it benefits from its financial strength and extensive resources as one of the world's most valuable companies. The company's leadership also extends into the field of artificial intelligence.
The Bundeskartellamt's decision is valid for a period of five years, as prescribed by law. During this time, Microsoft will be subject to special oversight for potential abuse under Section 19a (2) of the German Competition Act (GWB). However, no decision has been made yet regarding the initiation of proceedings to investigate specific practices by Microsoft.
(The Bundeskartellamt – 30.09.2024)
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