Microsoft Avoids EU Antitrust Fine by Separating Office and Teams Pricing
Microsoft (MSFT.O) has avoided a potentially hefty antitrust fine from the European Union by offering customers lower prices for Office products without bundling them with Teams. The move comes amid escalating tensions between the EU and the U.S. over investigations into major tech companies.
The case was triggered by a 2020 complaint filed by Slack Technologies Inc (CRM.N), owned by Salesforce, accusing Microsoft of bundling its chat and video app Teams with Office to gain an unfair advantage over competitors. A similar complaint was later filed by German rival AlphaVue in 2023.
Under the agreement, Microsoft has agreed to widen the price difference between certain Microsoft 365 and Office 365 suites—with and without Teams—by up to 50%. This applies to business-focused suites as well, the EU’s competition enforcer confirmed on Friday, validating a Reuters report from May.
The price difference will range from €1 to €8 and remain in effect for seven years. Additionally, the U.S. software giant has committed to enhancing interoperability for a period of 10 years to support competition. The proposal will be implemented globally.
European customers will also be allowed to export their Teams messaging data to rival services.
EU antitrust chief Margrethe Vestager’s deputy, Teresa Ribeiro, said in a statement: “Today’s decision opens the door to competition in this crucial market and ensures that businesses can freely choose communication and collaboration tools that best meet their needs.”
Ribeiro had expressed concern last week after U.S. President Trump imposed a €2.95 billion ($3.5 billion) fine on Alphabet (GOOGL.O) over its ad tech practices, calling the move unfair and discriminatory. She warned that the U.S. could retaliate with additional tariffs.
Nanna-Louise Linde, Microsoft’s Vice President for Government Affairs in Europe, welcomed the agreement, stating, “We appreciate the constructive dialogue with the Commission that led to this resolution, and we are now focused on implementing these new obligations swiftly and thoroughly.”
AlphaVue CEO Niko Fostiropolos said the measures would strengthen Europe’s digital ambitions. “This sends an important signal for Europe’s digital sovereignty: fair market conditions not only foster technological diversity but also safeguard the long-term innovative capacity of the European market.”
Microsoft, which has previously faced fines totaling €2.2 billion for bundling and other marketing practices, has adopted a more cooperative approach with EU antitrust regulators in recent years.
The EU’s antitrust fines can reach up to 10% of a company’s global annual turnover.
($1 = €0.8535)
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