Microsoft Avoids EU Fine with Agreement to Separate Teams from Office Suite
Microsoft is poised to avoid a substantial antitrust fine after the European Union received positive feedback on the company’s offer to settle an investigation into the bundling of its Teams video-conferencing app. EU regulators are expected to accept Microsoft’s commitment to offer Teams as a separate product from its popular Office 365 and Microsoft 365 packages, according to sources familiar with the matter. This decision follows a “market test” where rivals and customers raised no notable objections.
The European Commission had previously cautioned Microsoft about leveraging its market dominance as 2019 to unfairly advantage Teams over competitors. The settlement requires Microsoft to sell Teams independently, offer lower pricing for Office packages without Teams, and enhance interoperability with rival software utilizing Microsoft services.
The case originated from a 2019 complaint filed by slack,which was later acquired by Salesforce for $27.7 billion in 2021.
This potential resolution arrives amidst heightened tensions in EU-US relations, following criticism from the White House regarding the EU’s scrutiny of US tech companies. The Commission recently postponed a potential fine for Google, reportedly due to concerns about provoking a reaction from President Trump.
While the EU has levied significant fines against major tech companies in recent years,it is increasingly prioritizing negotiated settlements to avoid lengthy and costly legal battles. Similar agreements have recently been reached with Apple (opening its mobile wallet) and Amazon (revising its marketplace “Buy Box” and data usage).
Both the EU Commission and Microsoft have declined to comment on the pending acceptance of the commitments, which remains in draft form and subject to potential timing adjustments.