
Microsoft has secured EU approval for binding commitments to resolve antitrust concerns over its Teams collaboration platform, effectively ending a years-long investigation and avoiding potentially multi-billion-dollar fines. Under the agreement accepted by the European Commission, Microsoft will offer Office 365 and Microsoft 365 suites without Teams at reduced prices for seven years and enhance interoperability and data portability for rival messaging tools, addressing a complaint originally filed by Slack in 2020 (EU Commission).
The decision follows a formal probe launched in July 2023, during which the Commission found that bundling Teams with dominant productivity applications granted it an undue competitive advantage. Microsoft’s commitments also include ensuring customers can export Teams data to rival platforms and implementing ten-year obligations for interoperability, thereby reshaping how enterprise software is packaged and sold across Europe.
Key Commitments and Enforcement Mechanisms
Microsoft must maintain a clear price differential between Office suites with and without Teams, a requirement set to last seven years, while interoperability and data portability obligations will extend for ten years. The company has already increased the price gap by 50% following market tests. A monitoring trustee will oversee compliance and mediate disputes, with unresolved issues subject to fast-track arbitration. Non-compliance could trigger fines up to 10% of Microsoft’s annual global revenue (Reuters).
Immediate changes include offering a standalone Teams subscription at €5.25 per user per month globally—an option Microsoft introduced in April 2024—and allowing seamless export of messaging histories. These measures aim to lower barriers for enterprise customers to switch to competing collaboration platforms such as Slack or German rival alfaview.
Market Impact and Global Implications
The unbundling deal has already influenced Microsoft’s worldwide strategy, prompting the extension of Teams as a separate product beyond Europe. EU Competition Chief Teresa Ribera hailed the agreement as enhancing competition in a “vital sector,” ensuring firms can choose the communication tools that best suit their needs (Morningstar).
The resolution sets a precedent for resolving platform-bundling disputes through negotiated technical remedies rather than punitive fines. Competitors such as Salesforce, which previously complained that Teams’ integration harmed its business, have withdrawn objections following market tests, underscoring the broader shift toward modular enterprise software offerings.