Microsoft has managed to avoid a potentially hefty EU antitrust fine by offering customers reduced prices for Office products that don’t include its Teams app. This move, announced on Friday, comes amidst growing tensions between the U.S. and the EU over the latter’s scrutiny of Big Tech. The case began with a 2020 complaint from Salesforce-owned Slack, which accused Microsoft of bundling its chat and video app Teams with its Office suite to gain an unfair competitive advantage.
A similar complaint was filed by German rival alfaview in 2023. The EU’s competition enforcer confirmed on Friday that Microsoft has agreed to increase the price gap by 50% between certain Microsoft 365 and Office 365 suites that exclude Teams and their versions that include it. The price difference will range from 1 to 8 euros and will remain in effect for seven years. The U.S. software giant also committed to improving interoperability with rival services for a period of 10 years. Microsoft’s new offer will be implemented globally.
European customers will also be given the ability to export their Teams messaging data to rival platforms. EU antitrust chief Teresa Ribera stated that the decision “opens up competition in this crucial market, and ensures that businesses can freely choose the communication and collaboration product that best suits their needs.”
This development follows a tense week after Ribera imposed a 2.95 billion euro fine on Alphabet’s Google over its ad-tech practices, which U.S. President Trump called unfair and discriminatory. Nanna-Louise Linde, a Microsoft vice president, welcomed the agreement, stating, “We appreciate the dialogue with the Commission that led to this agreement, and we turn now to implementing these new obligations promptly and fully.”
Alfaview’s CEO, Niko Fostiropoulos, believes Microsoft’s solution will boost Europe’s digital ambitions. He said it sends an “important signal for Europe’s digital sovereignty: fair market conditions not only promote technological diversity, but also secure the long-term innovative strength of the European market.”
Microsoft has a history of facing EU fines, having been penalized a total of 2.2 billion euros in the past for bundling products and other marketing tactics. However, the company has adopted a more conciliatory approach with EU regulators in recent years. EU antitrust fines can amount to as much as 10% of a company’s global annual turnover.
