Germany: Issued Bundeskartellamt ruling classifying Microsoft as an undertaking of paramount significance for competition across markets

On 30 September 2024, the German Federal Cartel Office (Bundeskartellamt) issued a decision classifying Microsoft as an undertaking of paramount significance for competition across markets under Section 19a of the German Digitalisation Act on extended abuse control. The classification imposes extended abuse control on Microsoft, allowing the authority to directly prohibit anti-competitive practices and regulate Microsoft's extensive product portfolio, including operating systems, productivity software, cloud services, and emerging technologies like artificial intelligence. According to the Bundeskartellamt, Microsoft often competes directly with third-party developers while at the same time also establishing the framework for their products. The decision is valid for five years, and no specific proceedings to examine Microsoft's practices have been initiated yet.