Microsoft dodges EU antitrust fine — unbundles Teams from Office 365

Microsoft Teams is Microsoft’s flagship collaboration platform, replacing the likes of Skype. Teams is used by companies and schools to share files, host meetings, and stay connected.

In 2019, Slack raised concerns about Microsoft bundling Teams with Office 365, prompting closer scrutiny from EU regulators. A year later, Slack filed a formal antitrust complaint with the European Commission, accusing Microsoft of abusing its market dominance by forcing Teams onto customers and blocking its removal.

Microsoft SEO, Satya Nadella, even spoke out at Slack in 2021, commenting on whether Slack would even exist without Windows.

In 2023, the European Commission launched a formal investigation into Microsoft for bundling Teams with Office 365. Two years later, the case is finally wrapping up, with Microsoft agreeing to a settlement that the Commission is expected to approve, allowing the company to avoid a hefty fine.

What’s in the settlement — and what it means for users

The settlement between Microsoft and the European Commission comes with clear commitments the company must follow.

One of the biggest changes is pricing. Office 365 and Microsoft 365 will now be offered without Teams at a lower cost, around $2.20 (€2) less per user each month. Teams will also be sold on its own for about $5.50 (€5) per user per month.

Microsoft has also committed to improving how Teams works with competing platforms. This should make it easier for rival apps to integrate with Teams and other Microsoft services, which is a clear win for consumers.

Another critical change is data portability. Users in the EU will be able to export and transfer their Teams data to rival platforms, making it easier to switch services and avoid being locked into one ecosystem.

It’s a massive win for user flexibility when selecting their collaboration tools, as you’ll no longer be forced to use Microsoft products.

Why this matters for Big Tech

The European Union is trying to stop Big Tech from using its power to push customers into products they might not need or want. Microsoft bundling Teams with Office 365 was seen as unfair because it made it harder for competitors like Slack and Zoom to compete, especially since Microsoft already has a well-established suite of tools.

This recent case shows the EU is serious about holding Big Tech accountable, while still trying to avoid unnecessary tension with the United States and Donald Trump, who has criticised the EU for being too harsh on Silicon Valley companies.

The deal strikes a middle ground that benefits consumers. The EU gets Microsoft to change its business model without issuing a massive fine, which also helps prevent political flare-ups between the US and Europe.

Other tech giants like Google, Amazon, and Apple are likely watching closely. It’s often better to work with regulators early and make necessary changes, something Apple has already experienced after the EU ruled it had to adopt USB-C.

More choice ahead for businesses and consumers

The European Commission is expected to approve the settlement with Microsoft within the next few weeks, bringing a five-year ordeal to a close. Once approved, Microsoft will have to offer Office 365 and Microsoft 365 without Teams at a lower price in Europe, with these rules set to last around seven to ten years.

Even if you’re outside the EU, this still matters. Microsoft plans to roll out the same changes globally, not just in Europe. That means more choice for consumers everywhere, alongside long-term commitments to improving how Teams works with competing products.

It’s a big win all around. Slack and Zoom will find it easier to compete, and customers will have more flexibility in choosing the tools that work best for them.