Slack CEO welcomes EU Microsoft probe that could leade to $21 billion fine

Speaking to Fortune, Slack CEO Denise Dresser welcomed the EU’s latest intensification in its war with big tech after the bloc leveled competition charges that appeared to be hurting Slack.

The EU raised antitrust concerns with Microsoft on Tuesday for bundling its Teams and Office packages, which competitors including Slack argue give it an illegal advantage. The EU said Microsoft’s actions were “possibly abusive.”

“Preserving competition for remote communication and collaboration tools is essential as it also fosters innovation on these markets,” said Margrethe Vestager, executive vice president in charge of competition policy at the EU.

Slack, owned by Salesforce since 2021, first brought its complaint against Microsoft in 2020. But swirling momentum against the biggest names in tech means these complaints are now materializing into action.

“We are encouraged by their statement of objection and certainly are supportive of anything that encourages free and fare competition in the marketplace,” Dresser told Fortune.

In April, Microsoft said it would stop bundling Teams with its Office suite, which includes Word, Excel, and PowerPoint, after scrapping it in the EU last year. 

Microsoft could be fined up to 10% of its annual revenue, equivalent to $21 billion, if found guilty. 

In a later statement to Fortune, Salesforce’s president and chief legal officer Sabastian Niles said: “The Statement of Objections issued today by the European Commission is a win for customer choice and an affirmation that Microsoft’s practices with Teams have harmed competition. 

“We appreciate the Commission’s thorough investigation of Slack’s complaint and urge the Commission to move towards a swift, binding, and effective remedy that restores free and fair choice and promotes competition, interoperability, and innovation in the digital ecosystem.”

A representative for Microsoft told Fortune: “Having unbundled Teams and taken initial interoperability steps, we appreciate the additional clarity provided today and will work to find solutions to address the Commission’s remaining concerns.”

For Dresser, the news that the EU appears likely to take action against Microsoft will be a further boost as she steadies the Slack ship after a series of high-profile departures. 

Dresser became the workplace messaging group’s third CEO within 10 months last year after Lidiane Jones’s surprise exit to the dating app Bumble.

The company is plotting its big AI play, pointing out that Slack AI already saves users 97 minutes per week.  

The EU is strengthening its rhetoric and actions against big tech’s stranglehold on European industry. 

The bloc fined Apple €1.8 billion ($1.95 billion) earlier this year over allegations it shut out music streaming competitors, most notably Spotify, which brought the complaint.