Microsoft to Unbundle teams in Europe to Avert EU Fine
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Brussels - Microsoft is on teh verge of resolving a lengthy antitrust investigation by the European commission, potentially avoiding a hefty fine, by agreeing to unbundle its Teams communication platform from Microsoft 365 subscriptions within the European Economic area (EEA) and Switzerland. The move comes after regulators scrutinized whether Microsoft leveraged its dominance in office productivity software to unfairly promote Teams, hindering competition.
The proposed solution, detailed in recent weeks, has reportedly met with little resistance from competitors and customers, signaling a likely end to the four-year investigation.This case centers on concerns that Microsoft illegally tied Teams to its Office suite, giving it an unfair advantage over rival communication services like Slack. The outcome will reshape how Microsoft distributes its products in Europe and could set a precedent for other tech giants facing similar antitrust scrutiny.
Timeline of the Antitrust Case
| Date | Event |
|---|---|
| November 2023 | European Commission formally accuses Microsoft of antitrust violations. |
| August 2023 | Microsoft details new Teams pricing for EEA and Switzerland. |
| 2023 | Microsoft begins initial steps to improve interoperability with rivals. |
| 2022 | European Commission launches formal investigation. |
One year ago, Microsoft President Brad Smith acknowledged the need for further action, stating On Teams, we have done a lot of work, our work isn’t yet done. Microsoft is committed to find a resolution to regulators’ concerns.
“ Smith also conceded that additional steps
would be necessary to satisfy regulators.
In 2023, microsoft announced adjusted pricing for packages without Teams in the EEA and Switzerland, offering a reduction of €2/month or €24/year. However,Teams remained available as a standalone subscription for €5/month or €60/year, a costlier option that initially diminished the impact of the ruling.
Did You Know?
The European Commission’s investigation began in 2022, following complaints from rivals alleging that Microsoft was abusing its market position.
Pro Tip:
Businesses currently using Microsoft 365 in Europe should review their licensing needs and consider the implications of the unbundling for their communication strategies.
TechRadar Pro contacted the European Commission and Microsoft for comment but did not receive an immediate response as of September 8, 2025, 15:30:53 UTC.
Bloomberg first reported the expected resolution.
What Does This Mean for Businesses?
The unbundling of Teams could lead to increased competition in the communication and collaboration software market, potentially benefiting businesses by offering more choices and driving down prices. It also underscores the growing regulatory pressure on large technology companies to ensure fair competition.
What are your thoughts on Microsoft’s decision to unbundle Teams? Do you think this will truly foster competition in the market?
Background: The Rise of Communication Platform Antitrust Concerns
The European Commission’s scrutiny of Microsoft’s practices reflects a broader trend of increased regulatory oversight of dominant tech companies globally. Concerns about anti-competitive behavior, data privacy, and market manipulation have led to investigations and fines for companies like Google, Apple, and Amazon. the focus on communication platforms stems from their critical role in modern business and the potential for market dominance to stifle innovation.
Frequently Asked Questions About Microsoft Teams and the EU Ruling
- What is the EU investigating regarding Microsoft Teams? The EU investigated whether Microsoft illegally tied Teams to its Microsoft 365 suite, giving it an unfair advantage over competitors.
- How will the unbundling of Teams affect Microsoft 365 pricing? Microsoft 365 packages without Teams will be cheaper by €2/month or €24/year in the EEA and Switzerland.
- Can I still purchase Teams as a standalone product? Yes,Teams will be available as a standalone subscription for €5/month or €60/year.
- What does this ruling mean for other tech companies? This ruling could set a precedent for other tech giants facing antitrust scrutiny regarding bundled products and services.
- When will the changes take effect? The changes are expected to take effect shortly, pending final approval from the European commission.
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