Microsoft's move to unbundle Teams from Office may help it avoid hefty EU fine

Microsoft could avoid another hefty fine from the EU. According to an exclusive report by Reuters, the EU is likely to accept its new proposal to resolve issues over how it bundles Teams with Office.

Microsoft is likely to avoid the EU’s hefty fine after unbundling Teams from Office

The matter began in 2020 when Slack, then owned by Salesforce, complained to the European Commission. It stated Microsoft had an advantage because Teams came bundled with Office. And later in 2023, German video app maker Alfaview also voiced similar complaints.

In response, Microsoft unbundled Teams from Office. It started selling Office minus Teams for €2 less, and selling Teams standalone at €5 a month. But that initial offer didn’t please competitors. So in February, Microsoft tweaked the prices once again.

Now the EU wants feedback from rivals and consumers prior to making a final decision. That may take months, and anything may still change based on what the market indicates.

Also read: Microsoft Teams to block screen capture during meetings starting July 2025

Microsoft’s revised proposal also contains greater interoperability. That includes it should be more convenient for competing apps to coexist with Microsoft software.

Neither the European Commission nor Microsoft has commented on this matter. To catch you up, Microsoft has already been fined €2.2 billion by the EU on several occasions over the years for bundling and other tactics. This latest move may save it from contributing to that figure.

Also read: Microsoft revamps Teams chat and channels experience for all commercial users