Is breaking up Big Tech really the magic bullet for startups?
Microsoft unbundles Teams from Office Suite
Microsoft’s decision to unbundle its video conferencing platform, Teams, from the Office suite comes after facing regulatory scrutiny over anti-competitive practices. While the bundling of apps has been under investigation by authorities, breaking up Big Tech may not be the ultimate solution for startups.
Why did Microsoft remove Teams?
In 2020, when the pandemic hit, Microsoft included Teams in its Office suite. However, Slack, a productivity app owned by Salesforce, filed a complaint with the European Union, alleging that Microsoft was leveraging the dominance of Office to overpower Slack. European regulators ruled in favor of Slack, finding Microsoft guilty of abusing its market power. In response to increasing global regulations, including in India, Microsoft decided to split Teams and Office to avoid further investigations. As of the end of 2023, Teams had garnered 320 million monthly active users, surpassing Slack’s 79 million.
India’s stance on market abuse
India’s Competition Act, 2002 encompasses guidelines on market abuse, including regulations targeted at Big Tech. The Competition Commission has been investigating Google’s Play Store practices. In March, the Committee on Digital Competition Law introduced the draft Digital Competition Bill, 2024, which focuses on unbundling apps and defining how data can be shared among apps. This proposed law directly addresses issues similar to the Teams-Office unbundling, something that local startups have been advocating for. Google and its Play Store policies have been subject to direct scrutiny under these laws.
The impact on users and small businesses
Unbundling could potentially create silos of multiple apps, impacting the user experience. Small businesses may face regulatory confusion regarding what constitutes an abuse of market power. These silos could hinder seamless user interfaces and make it more challenging for businesses to navigate. Additionally, targeted advertising may suffer due to restricted cross-sharing of data.
Balancing regulation and user privacy
While regulations aimed at unbundling Big Tech could potentially enhance user privacy, they may also complicate cross-linking calendars or syncing documents between apps. Cross-platform data sharing enables small businesses to offer targeted advertising, facilitating easier business discovery. It is essential to conduct thorough research before enforcing restrictions to ensure that the user experience is not compromised. Regulations should prioritize user privacy while allowing users to control which apps have access to their data.
Double standards in the startup community?
Ironically, startups supporting the breakup of Big Tech companies often operate platforms themselves. For small businesses that rely on these platforms to offer their services, silos created through unbundling could lead to a restricted and smaller database of users for targeted ads. Since such ads are crucial for digital businesses to sell their products and services, creating these silos may complicate matters for startups and increase the cost of acquiring users.
Incorporating customer testimonials
“I was skeptical about unbundling Teams from Office at first, but it has made a noticeable difference in terms of performance and ease of use. The silo approach may have its drawbacks, but overall, it has improved my productivity.” – John, small business owner
Key takeaways
- Unbundling Big Tech apps like Teams from Office Suite is a response to regulatory scrutiny over anti-competitive practices.
- India is also considering similar regulations through the draft Digital Competition Bill, 2024.
- Unbundling can create silos, potentially impacting user experience and hindering targeted advertising for small businesses.
- Balancing regulation and user privacy is crucial, and careful research is needed before implementing restrictions.
- Startups supporting the breakup of Big Tech should consider the potential impact on their own platforms and user databases.
- Silos may increase the cost of acquiring users for digital businesses and complicate business discovery.
- User testimonials highlight potential benefits but also acknowledge the drawbacks of unbundling.
