Zoom CEO Advocates US Probe into Microsoft's Teams Separation

Zoom CEO Advocates US Probe into Microsoft’s Teams Separation

The CEO of Zoom opines that the United States government ought to scrutinize Microsoft’s integration of Teams.

Recently, Microsoft unveiled its intention to present its Teams online conferencing and collaborative platform as an independent offering across much of Europe, commencing on October 1st. This announcement was prompted by the European Commission’s declaration of an inquiry into the potential anti-competitive nature of Microsoft’s coupling of Teams with Microsoft 365.

At present, the chief executive of a company offering a rival product to Teams believes that a parallel investigation should be conducted in the United States.
As reported by Bloomberg, Eric Yuan, the CEO of Zoom, made these remarks during a presentation at the Goldman Sachs Communacopia + Technology Conference when questioned about Microsoft’s separation of Teams from Microsoft 365 in Europe. Yuan articulated, “You should direct this inquiry to the FTC as well.”

The FTC, of course, refers to the United States Federal Trade Commission. In his statements, Yuan appears to advocate that the division of Teams from its parent Microsoft 365 would be a commendable step towards fostering fair competition, affirming, “Irrespective of the circumstances, fairness must prevail.” He elaborated: “We face formidable competitors who, on occasion, bundle their entire suite of offerings,” Yuan added during the conversation, asserting that Zoom remains committed to enhancing its products and business model with greater celerity and innovation.

It is worth noting that the FTC has previously engaged with Microsoft. Earlier this summer, the regulatory body sought to obstruct Microsoft’s endeavor to acquire Activision Blizzard through legal channels, though it failed to persuade a judge to impose a preliminary injunction against such an acquisition.

Zoom, established in 2011, initially garnered a substantial user base for its online video conferencing software. Nevertheless, its popularity surged in 2020 in response to the COVID-19 pandemic, which compelled a significant portion of the workforce to transition to remote work. However, as the world gradually returns to its regular work patterns, the utilization of Zoom’s software has markedly diminished from its zenith in 2020. In 2023, the company announced workforce reductions affecting 15 percent of its employees.

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