Microsoft escapes hefty EU fine by unbundling Teams

The European Commission has officially closed its antitrust probe into Microsoft. The decision comes as the Redmond giant agreed to unbundle its Teams app from Office 365 and Microsoft 365.

The dispute dates back to 2019, when Slack filed a complaint alleging Microsoft abused its dominance by tying Teams with Office, giving it an unfair market edge. The investigation intensified in recent years, with EU regulators warning that Microsoft’s practices hampered competition, affecting rivals.

As a result, Microsoft proposed changes earlier this year. The company said to offer Office packages without Teams at lower prices. It even pledged to improve interoperability so competing apps could work smoothly with Microsoft services.

The Commission reportedly said that the investigation hinted no major objections from customers or rivals. This is exactly why the approval of bundling has came. For Microsoft, the approval from the EU means no steep fine.

As reported by Bloomberg, Nanna-Louise Linde, Microsoft’s vice president of European government affairs, said, “We appreciate the dialogue with the commission that led to this agreement, and we turn now to implementing these new obligations promptly and fully.”

With the deal, Microsoft avoids a legal showdown and the EU signals a preference for negotiated solutions rather than drawn-out court battles. This move might also benefit Silicon Valley giants with ongoing antitruist cases in the EU.