Microsoft faces EU antitrust trouble for the first time in 15 years due to its Slack competitor.

Microsoft faces EU antitrust trouble for the first time in 15 years due to its Slack competitor.

Microsoft Faces Antitrust Probes for Anti-Competitive Practices

Microsoft, once known for its aggressive business practices, has recently come under scrutiny for potentially anti-competitive behavior. Despite its claims of being a more relaxed and customer-friendly company, Microsoft’s actions have raised concerns. The tech giant is now facing investigations by both the British antitrust probe and the EU antitrust directorate.

The latest investigation revolves around Microsoft’s popular collaboration platform, Teams, which is included in their Office 365 and Microsoft 365 enterprise suites. Slack, the work messaging app now owned by Salesforce, raised concerns about Microsoft’s bundling practices in 2020. The European Commission has now opened a formal probe to determine if Microsoft is violating any laws.

Competition Commissioner Margrethe Vestager emphasized the importance of maintaining competitive markets for remote communication and collaboration tools like Teams. She stated, “We must therefore ensure that the markets for these products remain competitive, and companies are free to choose the products that best meet their needs.”

The Commission specifically accused Microsoft of potentially breaking EU competition rules by not giving its productivity-suite customers a choice about receiving Teams when they subscribe. Additionally, Microsoft may have limited interoperability between its productivity suites and competing offerings. Microsoft has committed to cooperating with the Commission and finding solutions to address their concerns.

This investigation adds to a series of incidents that highlight Microsoft’s eagerness to shut out competitors. The company recently faced criticism for disregarding users’ preferences by opening links in its Edge browser without consent. It is also facing a similar antitrust probe as rival Amazon over contractual terms that may lock customers into Microsoft’s cloud.

In a separate development, under Microsoft’s partnership with OpenAI, customers of OpenAI are restricted from running its models on any cloud other than Microsoft’s. This limitation puts companies using Amazon, Google, or Oracle’s clouds in a difficult position, forcing them to either switch to Microsoft or opt for competing A.I. models. This situation not only disadvantages OpenAI but also adds to the growing perception of Microsoft as a company eager to exclude competition.

While Microsoft’s cultural transformation was previously seen as a positive change, these recent controversies are raising questions about the company’s behavior and market practices.

Waymo Shifts Focus Away from Self-Driving Trucks

In other news, Alphabet’s Waymo has announced that it will be redirecting its efforts away from self-driving trucks and towards the ride-hailing potential of its autonomous Driver system. This decision has led to layoffs and uncertainty about the future of Waymo’s trucking program.

Waymo will continue working with Daimler on self-driving trucks, but the change in focus indicates a reevaluation of priorities. The autonomous driving sector is highly competitive, and companies like Waymo need to make strategic decisions to ensure their long-term success.

Stable Diffusion Update: Enhanced Image-Generating Service

Stability AI has released an improved version of its image-generating service, Stable Diffusion. This updated version boasts better colors, contrast, shadows, lighting, and improved text generation. However, ethical concerns persist regarding the possibility of generating deepfakes, although Stability AI claims to be actively addressing problematic prompts. Another ethical concern centers around the copyrighted material on which the AI was trained.

While the advancements in Stable Diffusion are impressive, it is important to remain vigilant and consider the ethical implications associated with such technology.

Samsung Faces Challenges in Chip Market

Samsung reported a significant loss of $7 billion in the first half of the year due to a downturn in the chip market. The company has stated that the worst is over, but the recovery in demand is predominantly driven by high-end memory chips required for A.I. applications. Consequently, Samsung will continue cutting production in other chip lines, and analysts predict a broader chip recovery will likely occur only next year.

The chip market is highly volatile and subject to various external factors. However, with the increasing demand for A.I. and advanced technologies, high-end memory chips may play a vital role in Samsung’s recovery.

Facebook’s Monthly Active Users Continue to Grow

According to Meta’s latest quarterly results, Facebook now has 3.03 billion monthly active users, signifying a 3% year-on-year increase. Additionally, the social media platform recorded a 5% growth in daily active users, averaging 2.06 billion last month. Despite criticisms and concerns about its impact on society, Facebook remains a dominant player in the social media landscape.

Building an Alternative to Google and Apple Maps

In an effort to break free from the duopoly dominated by Google and Apple in the mapping space, the Overture Maps Foundation has released its first worldwide dataset. Founded by Amazon Web Services, Meta, Microsoft, and TomTom, and hosted by the Linux Foundation, the Overture Maps Foundation aims to collaborate on building and maintaining an up-to-date, comprehensive database of places of interest.

The release of this dataset provides an opportunity for developers to create alternative navigation and local search services without the need to rely solely on Google or Apple. With data on almost 60 million places around the world, the Overture Maps Foundation seeks to challenge the status quo and offer users more choices in mapping applications.

As technology continues to evolve, it is essential to ensure fair competition, user choice, and ethical practices in the tech industry. The investigations into Microsoft’s behavior, Waymo’s strategic shift, and the advancements in Stable Diffusion raise important questions about the future of these companies and the broader tech landscape.