Microsoft Avoids EU Antitrust Fine with Teams Deal

After a two-year investigation, Microsoft avoided EU antitrust sanctions over its Teams bundling with Office 365 and Microsoft 365, with the European Commission accepting Microsoft’s commitments. According to the European Commission, the measures include decoupling Teams from Office for standalone sales and widening the price gap between bundles with and without Teams to promote fair competition.

The case traces back to a 2020 Slack complaint, and by early 2024 regulators preliminarily found an undue distribution advantage and restricted interoperability with competing products. To mitigate risk, Microsoft had begun offering Office versions without Teams in the EU, but the Commission deemed those steps insufficient.

Microsoft’s commitments include increasing the price differential by a further 50%, stopping extra discounts for Teams or any bundled suite, and delivering full interoperability so competitors can embed Office apps and customers can migrate data to alternative services. The commitments will apply for seven years, with interoperability and data portability obligations lasting ten years and overseen by an independent trustee.