In a significant development concerning corporate competition, Microsoft has successfully navigated a major antitrust investigation launched by the European Commission. This inquiry stemmed from complaints raised by rival messaging platform Slack back in 2020 regarding the bundling of Microsoft’s Teams with its Office productivity suite. The investigation that spanned several years has concluded, allowing Microsoft to avoid potential hefty fines that could have reached up to 10% of its annual global revenue.
The European Commission approved Microsoft’s proposed concessions designed to address concerns about competition. As part of this resolution, Microsoft has committed to unbundling Teams from its Microsoft 365 and Office 365 offerings for the next seven years. This move allows customers to opt for a version of these suites that does not include Teams at a lower price, while also providing the option to add the collaboration tool for an additional cost.
Moreover, in an effort to enhance interoperability with third-party messaging and collaboration tools, Microsoft has agreed to open its application programming interfaces (APIs). This is expected to facilitate key features between its suite and competitors’ products, ensuring data can be exported from Teams for a period of five years.
The Commission had previously suggested that Microsoft’s bundling practices conferred an unfair advantage to Teams, further bolstered by its integration with other popular Microsoft applications such as Excel, Outlook, SharePoint, and Word. In response to these accusations, Microsoft initiated a partial unbundling of Teams in April 2024. However, the Commission determined that further adjustments were necessary, prompting Microsoft to present a more comprehensive plan in May 2025.
This ongoing dialogue between Microsoft and regulatory authorities has culminated in an outcome that is seen as favorable for both parties. The European Commission can claim a significant victory in pursuing compromises from a major tech player, while Microsoft sidesteps punitive measures that could have significantly impacted its financial standing. The commission indicated that Slack, along with another complainant, Alfaview, had withdrawn their complaints following a market test earlier this year, signaling a potential shift in the competitive landscape.
Teresa Ribera, the European Commission’s executive vice-president for Clean, Just and Competitive Transition, emphasized the importance of these commitments, stating that they would eliminate Microsoft’s tying practices that could hinder effective competition against Teams. She asserted that this decision would enhance competition in the communication and collaboration market, enabling businesses to choose the product that best suits their operational needs.
