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In 2020, Salesforce, the manufacturer of the Slack platform, complained to European regulators about Microsoft due to the integration of the Teams service into Office 365. Microsoft was the first company to participate in the PRISM surveillance program, according to leaked NSA documents obtained by The Guardian and The Washington Post in June 2013, and acknowledged by government officials following the leak. When the Internal Revenue Service audited these transactions, ProPublica reported that Microsoft aggressively fought back, including successfully lobbying Congress to change the law to make it harder for the agency to conduct audits of large corporations. Dame Margaret Hodge, a Labour MP in the UK said, “It is unsurprising – yet still shocking – that massively wealthy global corporations openly, unashamedly and blatantly refuse to pay tax on the profits they make in the countries where they undertake business”. This is due to the company being tax resident in Bermuda as mentioned in the accounts for ‘Microsoft Round Island One, a subsidiary that collects license fees from the use of Microsoft software worldwide.
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Microsoft Azure is one of multiple cloud computing services used for data storage by the Israel Defense Forces (IDF). The probe scrutinized Microsoft’s bundling of cloud services with products like Office and security tools, as well as its growing AI presence through its partnership with OpenAI. The European Commission issued a statement of objections, alleging Microsoft’s practice since 2019 gave Teams an unfair market advantage and limited interoperability with competing software. In June 2024, Microsoft faced a potential EU fine after regulators accused it of abusing market power by bundling its Teams video-conferencing app with its Office 365 and Microsoft 365 software.
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