The European Commission will not impose a billion-euro fine on Microsoft after all, as Teams will be unbundled from Microsoft 365.
The news had already been circulating, but has now been officially confirmed. Microsoft will not have to pay a billion-euro fine to the European Commission. The company has made commitments regarding how it bundles Teams with its Office package, concluding a four-year investigation.
Complaint from Slack
The investigation began after a complaint from Slack in 2020, which accused Microsoft of abusing its power by bundling Teams with Office 365. Microsoft was allegedly further increasing its market dominance this way. Although Microsoft had already introduced separate sales of Teams in the EU, critics found this insufficient.
In May, Microsoft promised to keep Teams unbundled from Office 365 for at least seven years. After discussions with the Commission, Microsoft took additional measures, such as publishing more documentation on interoperability. This allows competitors to better integrate their services with Office and Teams.
Political Context
According to ArsTechnica, EU Commissioner Teresa Ribera said that the agreements restore competition in the market for video conferencing and collaboration tools. Microsoft says it’s pleased with the dialogue and promises to implement the obligations “quickly and fully”.
The decision comes at a time of rising tensions with the US. Earlier this month, Google received a billion-euro fine in Europe, after which President Trump threatened additional import tariffs. Ribera emphasized that the EU, in addition to tough measures, also employs a “soft” approach and doesn’t resort to fines as quickly as the previous legislature.