Microsoft Ends EU Antitrust Concerns with Office 365 Shake-Up
Microsoft has finally settled its long-running competition dispute with the European Commission over its Teams collaboration platform.
The agreement brings to a close a protracted investigation sparked by a 2020 complaint from Slack Technologies, now part of Salesforce.
Under the new arrangement, Microsoft will offer Office 365 and Microsoft 365 suites without Teams at a lower price.
The price gap between bundles with and without Teams will increase by 50%, providing European users with clearer options and more value for their money.
Customers with long-term licenses will also have the option to switch to versions of the software that don’t include Teams, offering greater flexibility than ever before.
The company has also committed to perfecting interoperability. Rival collaboration tools will now be suitable to integrate with Office apps like Word and Excel, and businesses can fluently export their brigade data if they decide to move to a different platform.
These commitments aren’t temporary. They are legally binding for seven years, with the interoperability and data portability rules lasting ten.
Microsoft faces serious consequences for non-compliance, including fines of up to 10% of its global turnover.
Although this agreement was triggered by EU regulators, Microsoft will apply the changes worldwide.
The move could reshape the collaboration software market on a global scale, offering more choice for businesses everywhere.
Teresa Ribera, Executive Vice President for a Clean, Just, and Competitive Transition, said: “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.”
Microsoft’s Vice President for European Government Affairs, Nanna-Louise Linde, added: “We appreciate the dialogue with the Commission that led to this agreement, and we turn now to implementing these new obligations promptly and fully.”
The agreement marks a crucial moment in the drive for fair competition in the tech industry, particularly as digital collaboration tools become central to how businesses operate.
