Microsoft sidesteps hefty EU fine with Teams unbundling deal


The Microsoft Teams app on a laptop computer organized in New York, US, on Tuesday, June 25, 2024.

Gabby Jones | Bloomberg | Getty Images

The European Union on Friday stated it has accepted commitments from Microsoft to unbundle its Teams office communication platform from its in style productiveness apps.

The determination basically exempts Microsoft from receiving a probably hefty antitrust fine after the corporate was final 12 months accused by the European Commission — the manager physique of the EU — of breaching competitors guidelines with the “abusive” bundling of its Teams and Office merchandise.

“With today’s decision, we make binding for seven years or more Microsoft’s commitments to put an end to its tying practices that may be preventing rivals from effectively competing with Teams,” Teresa Ribera, govt vice-president for clear, simply and aggressive transition, stated in an announcement.

Under the commitments, which Microsoft first unveiled in May, the U.S. software program big will make variations of its Office 365 and Microsoft 365 software program suites accessible at a lowered value with out Teams, in addition to enable clients with long-term licenses to change to suites with out Teams.

The firm will even present interoperability between instruments that compete with Teams and sure Microsoft merchandise and permit purchasers to maneuver information out of Teams to competing merchandise.

Microsoft has subsequently additionally supplied to make additional commitments to resolve its competitors considerations after the European Commission market-tested the agency’s preliminary pledges.

They included rising the worth distinction between some Microsoft 365 and Office 365 suites with out Teams and people with Teams by 50% and clarifying that Microsoft web sites promoting a collection with Teams ought to show the corresponding supply with out it.

“We appreciate the dialogue with the Commission that led to this agreement, and we turn now to implementing these new obligations promptly and fully,” Nanna-Louise Linde, vice chairman of European authorities affairs, stated in an announcement Friday.

The EU first opened an antitrust investigation into Microsoft in July 2023 following a grievance by Salesforce-owned Slack, which has a rival chat service to Teams. Slack was acquired by Salesforce for $27.7 billion in 2021.

Slack was not instantly accessible for remark when contacted by CNBC.

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