The European Commission will not fine Microsoft for bundling Teams with Office 365 and Microsoft 365 subscriptions. The European regulator says the American company has done enough to address competition concerns, The Verge reports.
The case was initiated back in 2020, when Slack filed a complaint with the EU against Microsoft for anticompetitive practices. And in 2023, European regulators opened a new investigation to find out whether Microsoft's strategy violates antitrust rules.
Microsoft first separated Teams from Office 365 and Microsoft 365 subscriptions in the EU in September 2023. The company expanded the changes to all markets in April 2024. Despite this, the European Commission continued its investigation, arguing that the changes were insufficient to address the concerns.
Now, the European regulator has reviewed its previous statements and says Microsoft's commitments meet the Commission's concerns. In particular, the tech giant offers Office tools without Teams at a lower price, allows existing customers to switch to non-Teams plans and import their data, and ensures key functionality between third-party communication tools, such as Slack, and Microsoft products.
The company has committed to complying with these rules for seven years, and the data portability requirements will apply for 10 years. If the European Commission finds anti-competitive behavior, Microsoft could face a fine of 10% of its annual global revenue.
"Organizations big and small across Europe and around the world rely heavily on videoconferencing, chat and collaboration tools, especially since the coronavirus pandemic. Today’s decision therefore opens up competition in this crucial market, and ensures that businesses can freely choose the communication and collaboration product that best suits their needs," said Teresa Ribera, Executive Vice-President of the European Commission for a Clean, Just and Competitive Transition.