Microsoft is the latest US tech giant under investigation by Germany's competition watchdog:
On Tuesday, Germany's Bundeskartellamt — which translates to federal cartel office — announced it was evaluating whether Microsoft qualified as a company of "paramount significance." Or put another way, whether it's large enough to pose a threat to companies with fewer resources and therefore warrant closer scrutiny by regulators.
The investigation is being conducted under abuse control laws that went into effect in early 2021. These changes granted the agency the authority to prohibit large companies from engaging in certain business practices if it's determined they're likely to harm competition.
[...] The agency pointed to the company's expansive portfolio, which spans operating systems, productivity software, cloud services, video games, and social media as examples. "In light of this, there are good reasons to examine whether Microsoft is of paramount significance for competition across markets. Such a finding would allow us to take action at an early stage and prohibit possible anticompetitive practices," Bundeskartellamt President Andreas Mundt said in a statement.
There's also the fact that Microsoft isn't the first company to attract the German watchdog's attention. Last year, the agency found with "binding effect" that both Google and Meta were companies of paramount significance and were thus subject to heightened scrutiny. Amazon has found itself in a similar boat, but has appealed its decision. Meanwhile, the Bundeskartellamt says it's nearing completion of an investigation into Apple.
In response to the German government's investigation, a Microsoft spokesperson told The Register: "As a major technology company, we are mindful of our heightened responsibility to support a healthy competitive environment. We will engage constructively with the Bundeskartellamt, as they seek to understand our role in digital markets."
