Microsoft slips unscathed through EU competition probe after promising to unbundle Teams

Thanks to a pledge to unbundle its firm messaging app Teams from its productivity suites, Microsoft has managed to gaffe unscathed done a large antitrust probe by the European Commission that could person resulted successful monolithic fines for the tech giant.

The Commission connected Friday okayed Microsoft’s concessions to code the EU’s contention concerns implicit the institution including Teams on with the remainder of its Office productivity suite for free, concluding a multi-year investigation that was sparked by complaints from rival bureau messaging app Slack successful 2020.

Microsoft has promised that for the adjacent 7 years, it volition supply Microsoft 365 and Office 365 without Teams astatine a little price, and volition fto customers take whether they privation to wage much to adhd the collaboration app to the suites. The Commission has besides managed to get Microsoft to hold to unfastened up its APIs to alteration interoperability for cardinal features betwixt its suite and third-party messaging and collaboration tools, arsenic good arsenic fto them export their information retired of teams for the adjacent 5 years.

Microsoft did not instantly instrumentality a petition for further details astir its commitments.

In its investigation, the European authorization accused Microsoft of breaching contention rules by bundling teams with its productivity suites, abusing its ascendant presumption and granting Teams an undue advantage. In its preliminary findings, the Commission besides said that vantage was improved due to the fact that Teams was integrated with different Microsoft 365 apps similar Excel, Outlook, SharePoint, and Word.

Microsoft attempted to allay those concerns by implementing a partial unbundling of Teams successful April 2024, but the Commission felt much extended changes were needed, pursuing which the institution offered a revised program successful May 2025.

This support is simply a win-win for some the EU and Microsoft, particularly due to the fact that determination was nary ineligible battle. The Commission tin accidental it’s wrung a large compromise from Big Tech. Now, Microsoft is voluntarily offering immoderate versions of some its productivity suites without Teams astatine a 50% little terms compared to versions that bundle the app, worldwide.

Microsoft besides dodged punitive measures and a large fine, arsenic the Commission’s penalties for breaching contention rules tin scope up to 10% of yearly planetary gross — which, considering the tech elephantine past twelvemonth recorded $245 cardinal successful revenue, would person been truckloads of money.

The Commission besides noted that Slack and Alfaview, different institution that had complained astir Teams, person withdrawn their complaints pursuing a marketplace trial by the Commission earlier this year.

“With today’s decision, we marque binding for 7 years oregon much Microsoft’s commitments to enactment an extremity to its tying practices that whitethorn beryllium preventing rivals from efficaciously competing with Teams,” Teresa Ribera, enforcement vice-president for Clean, Just and Competitive Transition astatine the European Commission, said successful a statement.

“Today’s determination truthful opens up contention successful this important market, and ensures that businesses tin freely take the connection and collaboration merchandise that champion suits their needs,” said Ribera.