Microsoft dodges EU antitrust fine — unbundles Teams from Office 365

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Microsoft Teams serves as Microsoft’s primary platform for collaboration, taking over from services like Skype. This tool is utilized by businesses and educational institutions alike for file sharing, scheduling meetings, and maintaining communication.

In the year 2019, Slack expressed worries about Microsoft bundling Teams with Office 365, leading to increased interest from EU regulatory bodies. A year subsequently, Slack submitted an official antitrust complaint to the European Commission, claiming that Microsoft was misusing its market power by pressuring customers to use Teams and preventing them from removing it.

In 2021, during a conversation with Slack, Microsoft’s CEO, Satya Nadella, mused about the possibility of Slack not being around if it weren’t for Windows.

In a chat with Slack in 2021, Microsoft’s leader, Satya Nadella, pondered the question of whether Slack might have never come to be without the presence of Windows.

In the year 2023, the European Commission initiated an official inquiry concerning Microsoft’s practice of including Teams within Office 365 packages. After two years, this case is nearing its conclusion, with Microsoft reaching a settlement that the Commission is likely to endorse, thereby sparing the company from a substantial penalty.

What’s in the settlement — and what it means for users

The agreement reached between Microsoft and the European Commission sets out specific obligations that Microsoft is required to uphold.

One significant shift is in pricing. From now on, Office 365 and Microsoft 365 can be obtained without the inclusion of Teams at a reduced price, approximately $2.20 (€2) cheaper per user per month. Alternatively, Teams can be purchased individually for around $5.50 (€5) per user per month.

Microsoft intends to enhance the compatibility of Teams with rival platforms, facilitating seamless integration between these apps and Microsoft’s services. This move benefits consumers significantly by providing a more unified experience across different applications.

One significant alteration is data mobility. Users within the European Union will now have the ability to extract and move their Teams data to competing platforms, facilitating a smoother transition between services and preventing them from being confined to a single ecosystem.

This change significantly enhances user freedom by allowing them to choose from various collaboration tools, without being compelled to stick with Microsoft’s offerings exclusively.

Why this matters for Big Tech

The European Union aims to prevent tech giants from leveraging their influence to steer customers towards unnecessary or unwanted products. For instance, the integration of Microsoft Teams with Office 365 was deemed unjust as it created barriers for competitors such as Slack and Zoom, particularly since Microsoft’s existing lineup of tools already enjoys widespread popularity.

As a analyst, I find this latest scenario underscores the EU’s commitment to ensuring tech giants are held responsible, all while seeking to maintain a harmonious relationship with the U.S., even amidst criticisms from figures like Donald Trump, who has been vocal about his perception that the EU is overly critical of Silicon Valley corporations.

The agreement finds a balanced solution that advantages consumers, as Microsoft agrees to adjust its business approach without incurring a heavy fine, thereby reducing potential diplomatic conflicts between the U.S. and Europe.

Major tech companies such as Google, Amazon, and Apple might be keeping a keen eye on the situation. Proactively collaborating with regulators at an early stage, making any required adjustments when necessary, is generally more advantageous, as exemplified by Apple’s experience of adopting USB-C following the EU’s ruling.

More choice ahead for businesses and consumers

The European Commission is anticipated to finalize the agreement with Microsoft within approximately three weeks, marking an end to nearly five years of proceedings. Upon approval, Microsoft will be required to provide Office 365 and Microsoft 365 without Teams at a reduced price in Europe for a period of around seven to ten years. This arrangement is expected to stay in effect.

Regardless of where you are located, geographically speaking outside the EU, these changes are significant. In fact, Microsoft intends to implement these same changes worldwide, not limiting them to Europe. This global rollout will bring increased choices for consumers globally and long-term promises to enhance Teams’ compatibility with competing products, ensuring a better user experience everywhere.

This outcome is a significant triumph for everyone involved. Both Slack and Zoom can now navigate competition with greater ease, while users are provided with increased freedom to select the most suitable tools tailored to their needs.

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2025-09-11 20:10