Following Microsoft’s concession to unbundle Teams from the 365 suite, the European antitrust case that has been ongoing since 2019 appears to be coming to an end.
European regulators are about to conclude an antitrust investigation against Microsoft. And if we are to believe Bloomberg, Microsoft will escape without a fine. The European Union seems satisfied with the unbundling of Teams from the Microsoft 365 suite.
To avoid a fine, Microsoft decided in 2023 to separate Teams from its software suite. Slack approached Europe in 2019, arguing that bundling Teams with other Microsoft applications gave it an unfair advantage. Subsequently, the unbundling of Teams was implemented globally. You can now take Teams as a separate product or still as part of the 365 bundle.
Conditions
The European Union agrees with this measure and seems willing to waive a potential fine for Microsoft. However, this will only happen under certain conditions. For instance, there must be a clear price difference between subscriptions with and without Teams. Microsoft doesn’t need to do this yet for subscriptions with or without Copilot for all clarity.
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Additionally, the EU requires Microsoft to improve interoperability with competing software. This gives Slack a better chance against Teams in organizations deeply embedded in the Microsoft ecosystem. The final decision is expected to be formalized in the coming weeks.
Softer Approach
The EU seems to be opting for a softer approach under the current legislation. Teresa Ribera (PSOE, Spain) is less eager to use the fine stick than her predecessor Margrete Vestager. Along with Microsoft, Google too will likely get away with a lighter penalty. The new approach may help to ease relations with the United States, a vocal opponent of European legislation.
Whether these measures will still have any effective impact seems doubtful. Today, Microsoft Teams has five times as many users as Slack.