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Microsoft set to escape EU fine with Teams unbundling deal
The European Commission had warned Microsoft that since 2019 its bundling practices gave Teams an unfair advantage over rivals, following a complaint lodged by messaging platform Slack, which was later acquired by Salesforce Inc. for $27.7 billion in 2021.
Microsoft Corp. is set to avoid a potentially hefty antitrust fine in Europe after the European Union gave the green light to its proposed settlement over the bundling of its Teams video-conferencing app with Office products, Bloomberg reported.
According to people familiar with the matter, EU regulators will accept Microsoft's commitment to sell Teams separately from Office 365 and Microsoft 365, following a market test that drew no major objections from competitors or customers.
The decision is expected to be formalized in the coming weeks.
The European Commission had warned Microsoft that since 2019 its bundling practices gave Teams an unfair advantage over rivals, following a complaint lodged by messaging platform Slack, which was later acquired by Salesforce Inc. for $27.7 billion in 2021, the report added.
Under the settlement, Microsoft has pledged to:
- Offer Office packages without Teams at lower prices
- Improve interoperability for rival software using Microsoft services
The move marks a shift in Brussels' approach, where regulators are increasingly opting for negotiated agreements rather than lengthy legal fights with tech giants. It also provides a brief reprieve in strained EU-US relations, which recently came under pressure after criticism from President Donald Trump over the EU's scrutiny of American tech firms.
The EU’s competition watchdog has in recent years levied multibillion-euro fines on Big Tech but has also struck agreements with companies including Apple, which opened its mobile wallet technology to rivals, and Amazon, which revamped its marketplace practices. Both Microsoft and the European Commission declined to comment on the draft decision, the report added.
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