Microsoft has avoided a fine from the European Commissiondue to some significant changes it is bringing. The company had been accused of violating EU antitrust laws by bundling its Teams app with Office 365 and Microsoft 365. The European Commission says it has accepted commitments from Microsoft to address competition concerns. It all started after a complaint filed by Slack in July 2020.
"The commitments address the Commission's concerns about the connection of Microsoft Teams with the productivity applications company's," the European Commission says.
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Microsoft's commitments
Microsoft's commitments include:
– Availability of versions of Office suites without Teams at a reduced price.
– Ability for customers with long-term licenses to switch to suites without Teams.
– Providing interoperability for core functionality between communication and collaboration tools that compete with Teams and certain Microsoft products.
– Ability for customers to move their data outside of Teams to facilitate the use of competing solutions.
Most of these commitments will be enforced by EU lawmakers for seven years, while the interoperability and data portability commitments will last for 10 years. Microsoft initially decoupled Teams from Office in Europe in 2023to address regulatory concerns, and then decoupled globally Teams from Office 365 (as a separate app)
Teresa Ribera, Executive Vice-President for Clean, Fair and Competitive Transition at the European Commission, said: "Organisations, large and small, across Europe and the world rely heavily on video conferencing, chat and collaboration tools, especially since the start of the coronavirus pandemic. Today's decision therefore opens up competition in this crucial market and ensures that product communication and collaboration that best suits their needs."
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EU lawmakers first opened an antitrust investigation into Microsoft over its integration of Teams in 2023, after Slack complained of anti-competitive behavior (amid intense competition with Microsoft that developed after the start of the COVID-19 pandemic). Slack’s initial complaint alleged that Microsoft had “illegally bundled” its Microsoft Teams product with Office and “force-installed it on millions of users, blocking its removal and hiding the true cost to enterprise customers.”
The European Commission's decision to accept Microsoft's commitments on Teams is not just an end to a potential antitrust dispute, but a turning point in the Big Tech-Europe relationship. Microsoft avoids a fine, but is forced to adapt to a framework that prioritizes interoperability and consumer choice.
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The move shows that EU regulators are no longer content with ex post facto sanctions, but are pushing for structural changes to how platforms operate. In effect, Microsoft is being forced to unbundle Teams from Office, offer cheaper versions without it, and open up its systems to competitors. This sets a precedent that could affect other major software companies that control critical productivity and collaboration markets.
For businesses, the development translates into more flexibility and potentially better prices, while for Microsoft's competitors – such as Slack and other collaboration platforms – it opens a window of opportunity. The case highlights that the EU remains the most active regulatory force in the world against Big Tech, setting standards that other markets may follow.
