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Bundeskartellamt Imposes Extended Abuse Control on Microsoft under German Competition Act

29.09.2024 | 🇩🇪 German competition authority

The Bundeskartellamt has declared Microsoft an undertaking of paramount significance for competition across markets, subjecting the company to extended abuse control under the German Competition Act.


The Bundeskartellamt has identified Microsoft Corporation as a company of paramount significance in various markets, leading to the imposition of extended abuse control measures under Section 19a of the German Competition Act. This provision allows the Bundeskartellamt to prohibit anti-competitive practices by companies with significant market power.

Microsoft's dominance stems from its widely used products like the Windows operating system, Office applications, and other interconnected software, bolstered by its focus on cloud and AI technologies. The company's ecosystem covers a broad cross-market portfolio, particularly catering to business customers, setting global market standards.

Microsoft's continuous expansion through acquisitions, developments, and integrations of third-party offerings has solidified its competitive advantage. The company's success in entering new markets rapidly, such as with Teams for video conferencing and Xbox for gaming, showcases its ability to establish strong positions across various sectors.

With a leading position in artificial intelligence and cloud services, Microsoft collaborates with innovative partners to enhance its offerings. The company's products have become essential in business, administration, and private usage, shaping IT infrastructure standards and influencing software developers' compatibility requirements.

The Bundeskartellamt's decision applies to Microsoft as a whole, emphasizing the company's compliance with EU regulations for gatekeepers. While the decision is valid for five years, specific proceedings to examine Microsoft's practices are yet to be initiated, with the authority set to publish a summary of its decision soon.

The Bundeskartellamt's action against Microsoft aligns with its efforts under the GWB Digitalisation Act to intervene against large digital companies' practices effectively. Prior cases involving Alphabet/Google, Meta/Facebook, Amazon, and Apple have already been concluded or are pending, demonstrating the authority's proactive stance in regulating digital markets.

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