Microsoft has avoided an EU fine for bundling Teams with Office. The European Commission has agreed to the suggestion that the tech giant will offer Office versions without Teams at reduced prices.
The current commitments prevent a penalty that could have amounted to 10 percent of annual turnover. Most of the obligations to avoid the fine will apply for seven years, but interoperability and data portability must be guaranteed for the next ten years. Microsoft had already decoupled Teams from Office in Europe in 2023 and launched it as a separate app worldwide last year.
It had long seemed likely that the fine in question would be dropped. In May, insiders already indicated that Microsoft intended to make the requested concessions.
Read more: Microsoft expected to avoid EU fine over Teams bundling
Compromise after years of complaints
The European Commission has accepted Microsoft’s commitments to address competition concerns surrounding Teams. The concerns were specifically raised by Slack in July 2020. The company, which became part of Salesforce a year later, claimed that Microsoft Teams was unfairly promoted by linking it to Office 365 and Microsoft 365 for business customers.
The agreements mean that Microsoft must offer Office suites without Teams at reduced prices. Customers with long-term licenses can switch to suites without Teams. Microsoft must also ensure better interoperability between competing communication tools and certain Microsoft products.
“Organizations large and small in Europe and around the world rely heavily on video conferencing, chat, and collaboration tools, especially since the coronavirus pandemic,” said Teresa Ribera of the European Commission. She believes the decision will open up competition in this crucial market.
EU investigators launched a Microsoft investigation into Teams bundling in 2023. Slack’s original complaint accused Microsoft of “illegally tying” Teams to Office and “forcing it on millions of users, blocking its removal, and hiding the true costs to business customers.”