Microsoft Faces UK Bundling Lawsuit and 5% Stock Slide After OpenAI Ends Azure Exclusivity
Slack and Salesforce filed an April 23 lawsuit at London’s High Court, alleging Microsoft tied Teams to Office to stifle competition after EU bundling complaint. OpenAI removed Azure exclusivity while keeping its 27% stake valued at $135 B and extended licensing through 2032, triggering a 5% intraday slide in Microsoft stock.
1. UK Antitrust Lawsuit Over Bundling
Slack Technologies LLC and Salesforce filed suit at London’s High Court on April 23, accusing Microsoft of tying its Teams collaboration app to Office products and limiting customer choice. The complaint follows an EU probe and a 2020 bundling allegation, with plaintiffs seeking redress for alleged anticompetitive practices.
2. OpenAI Partnership Restructuring
OpenAI and Microsoft restructured their cloud agreement, ending Azure exclusivity but maintaining Microsoft’s 27% equity stake valued at $135 billion. The new deal extends Microsoft’s intellectual property license through 2032 and preserves revenue share from OpenAI through 2030, while removing one-way payments from Microsoft.
3. Market Reaction and Outlook
Microsoft shares fell as much as 5% intraday on concerns that both the legal challenge and loss of Azure exclusivity could undermine competitive advantages in productivity software and cloud AI services. Investors will monitor courtroom developments and how Microsoft leverages its OpenAI stake to offset potential headwinds in cloud differentiation.