seniorspectrumnewspaper – Microsoft has resolved a major antitrust investigation by the European Commission related to its Teams messaging platform. The case stemmed from a 2020 complaint by Slack, which accused Microsoft of unfairly bundling Teams with its Office 365 suite. In 2023, the Commission launched a formal investigation and concluded in 2024 that Microsoft had breached EU competition laws.
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The European Commission found that bundling Teams with Office 365 and Microsoft 365 gave the app an unfair distribution advantage. Customers were not given a clear choice to opt out of Teams when subscribing to Microsoft’s software. Furthermore, the Commission noted that interoperability limitations between Microsoft’s tools and rival products may have worsened the issue.
Microsoft faced a potential fine of up to 10 percent of its global annual revenue. In response, the company acted swiftly to address the concerns. It initially unbundled Teams from its Office suites in the EU but was told those changes were not enough. To avoid penalties, Microsoft made deeper commitments aimed at restoring fair competition in the European market.
The company agreed to sell Office 365 and Microsoft 365 versions without Teams at significantly lower prices. It also pledged not to offer discounts on Teams or on suites that include Teams. These changes are designed to give competitors a fair opportunity to attract business customers without being undercut by Microsoft’s bundling strategy.
EU Accepts Microsoft’s Commitments as Long-Term Compliance Measures Begin
Following these commitments, the European Commission tested Microsoft’s changes between May and June of this year. The results prompted Microsoft to go even further. The company increased the price gap between Office suites with and without Teams by 50 percent. It also agreed to display non-Teams options whenever promoting suites that include the messaging platform.
Microsoft committed to ensuring Teams’ competitors have effective interoperability with Microsoft products. It granted third-party platforms the ability to embed Microsoft Office applications and access Teams messaging data. This allows businesses using alternative tools to benefit from deeper integration with Microsoft services.
The Commission accepted Microsoft’s updated commitments, marking the end of the Teams antitrust case. These agreements will remain in force for seven years. However, commitments related to interoperability and data portability will last for ten years. An independent trustee will monitor Microsoft’s compliance throughout this period to ensure it honors all aspects of the agreement.
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This resolution demonstrates the European Commission’s continued enforcement of digital market fairness. It also signals a broader effort to prevent dominant tech firms from using bundling practices to suppress competition. Microsoft’s case sets a precedent for how companies must structure software offerings in highly competitive sectors. As digital collaboration tools continue evolving, fair access and transparency will remain essential. Regulators and companies alike must work to ensure balanced opportunities for innovation and market entry.
