Microsoft has avoided an EU fine after the US tech group offered concessions on how it packages together its Teams and Office products, ending a long-running antitrust investigation by the bloc’s regulators.
Since the initial complaint, Microsoft has unbundled Teams from Office 365 in the EU, but critics said the changes were too narrow.
In May, the $3.7 trillion software giant promised concessions, such as continuing the Teams and Office separation for seven years.
After a market test, Microsoft has since made additional commitments, such as publishing more information on so-called “interoperability” or the ability to use its products with others made by rivals.
After the EU imposed a multibillion-dollar fine on Google earlier this month, Trump has doubled down on threats to hit Europe with more tariffs.
Microsoft avoided an EU fine after the US tech giant made concessions on how it bundles its Office and Teams products, putting an end to the bloc’s regulators’ protracted antitrust probe.
Microsoft was accused of abusing its market dominance by linking its video conferencing tool to its popular suite of productivity apps. The investigation started in 2020 in response to a complaint from Slack, which is now a part of Salesforce.
Although Microsoft has unbundled Teams from Office 365 in the EU since the initial complaint, some have criticized the changes as being too limited.
The $3 trillion software behemoth made concessions in May, including extending the three-year separation of Office and Teams.
Following a test in the market, Microsoft has since committed to more things, like releasing more details about “interoperability,” or the capacity to use its products with those of competitors.
The EU regulator, which stated on Friday that these new commitments helped to restore fair competition and open the market to other providers, is pleased.
“These pledges promote competition in the vital market for video conferencing and teamwork software,” EU competition chief Teresa Ribera stated during a competition conference in Italy.
Microsoft welcomed “the dialogue with the commission that led to this agreement, and we turn now to implementing these new obligations promptly and fully,” according to Nanna-Louise Linde, vice-president of European government affairs for the company. “”.
This development coincides with escalating tensions over US Big Tech company regulation between President Donald Trump and the EU. Trump has intensified his threats to impose additional tariffs on Europe after the EU fined Google billions of dollars earlier this month.
According to Ribera, EU regulators would use a “soft” approach to reach agreements that could resolve antitrust disputes, even as they continued to use harsh measures like large fines.
“This ruling demonstrates that our soft enforcement strategy can be especially crucial in digital markets, where new products and integration tactics frequently push the limits of regulation,” she said.
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