The statement of objections from the regulator regarding Microsoft's alleged anti-competitive practices is expected soon. The root of the probe is a complaint filed by Slack in 2020 in which it stated that Microsoft hides the "true cost" from enterprise customers when it bundles Teams with the Microsoft 365 suite of products and forces it to be installed on machines. That said, another challenge that Microsoft may be experiencing soon in the enterprise space is another antitrust probe from the EU regarding the bundling of Teams in the Microsoft 365 suite of services. Although Microsoft didn't go into specifics, its latest investment is said to be around $10 billion with a return benefit being that OpenAI models will be deployed soon in various enterprise and consumer products. This was further underlined by an announcement extending the partnership agreement between Microsoft and OpenAI, the creator of ChatGPT. Its consumer categories are expected to shrink even further with revenue to decline a bit to $50.5-51.5 billion.ĭespite these challenges, Microsoft CEO Satya Nadella highlighted the company's strength in AI. ![]() Microsoft cited multiple macroeconomic and execution challenges for these declines and hinted at similar results in its ongoing quarter too. Windows OEM and Commercial revenue was down by 39% and 3% respectively, Xbox content and services shrunk by 12%, and Surface devices revenue fell 39%. Although it posted a revenue of $52.7 billion - which is a growth of 2% compared to the same quarter last year - with strong figures in the cloud and its enterprise products, it faced significant declines across consumer categories like Windows, Xbox, and Surface. Earlier in the week, Microsoft shares its latest financial numbers covering its FY23 Q2 period ending on December 31, 2023.
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