Microsoft Avoids EU Antitrust Fine by Unbundling Office and Teams

Microsoft has avoided a potentially massive EU antitrust fine by changing how it sells Office and Teams. The company will now offer cheaper Office packages without Teams, aiming to satisfy regulators and ease competition concerns.

Why the Case Started

The European Commission began investigating Microsoft after a 2020 complaint from Slack Technologies, now owned by Salesforce. Slack accused Microsoft of unfairly bundling its chat and video app Teams with Office to push out competitors. In 2023, German rival Alfaview also filed a similar complaint, putting more pressure on the EU regulator.

Microsoft’s New Commitments

To address these concerns, Microsoft agreed to widen the price gap between bundles with Teams and those without it. The difference will increase by 50%, ranging from 1 euro to 8 euros, and will stay in effect for the next seven years.

In addition, Microsoft will improve interoperability for 10 years, making it easier for rivals to compete. European customers will also gain the ability to export Teams messaging data to other platforms.

EU’s Reaction

EU antitrust chief Teresa Ribera welcomed the move, saying it strengthens competition and gives businesses more freedom of choice. She stressed that companies should be able to pick the communication tools that best fit their needs.

Wider Political Tensions

The decision comes at a sensitive time in EU–U.S. relations. Just last week, Ribera imposed a €2.95 billion fine on Google over its adtech practices, sparking criticism from U.S. President Trump. He called the fine discriminatory and hinted at possible trade retaliation through new tariffs.

Industry Reactions

Microsoft vice president Nanna-Louise Linde said the company values the dialogue with the Commission and will quickly implement its commitments.

Alfaview’s CEO Niko Fostiropoulos called the remedies a win for Europe’s digital future. He said the changes would support fair competition, innovation, and the continent’s digital sovereignty.

Microsoft’s Antitrust History

This is not Microsoft’s first run-in with EU regulators. Over the years, the company has paid a total of €2.2 billion in fines for bundling products and other anti-competitive practices. EU fines can reach up to 10% of a company’s global annual revenue, making compliance essential for Microsoft.