In context: Microsoft Teams saw explosive growth during the pandemic, but its integration with Microsoft 365 triggered European antitrust complaints. Rivals accused Microsoft of leveraging its market dominance to stifle competition. After years of legal pressure, the case may finally be nearing resolution.
Microsoft and the European Commission could soon resolve an antitrust investigation on amicable terms. CNBC notes that the company agreed to offer Teams as a stand-alone product outside its productivity suites, while Brussels would close the inquiry without imposing any fines. By doing so, Microsoft avoids another potentially hefty penalty in the European Union.
Nanna-Louise Linde, Microsoft's vice president of European Government Affairs, said the company proposed a series of practical commitments following good-faith discussions with the European Commission. She described the approach as fully addressing competitors' concerns and increasing options for European customers.
"The proposed commitments are the result of constructive, good-faith discussions with the European Commission over several months," the exec said. "We believe that they represent a clear and complete resolution to the concerns raised by our competitors and will provide European customers with more choices."
Microsoft is now prepared to offer versions of Office 365 and Microsoft 365 without Teams at a lower price. The company will also introduce measures to improve interoperability across platforms, allowing users to transfer data from Teams to collaborative tools offered by competitors.
The legal dispute over Teams began in 2020 when Slack accused Microsoft of abusing its market dominance to stifle competition. Salesforce acquired Slack for over $27 billion in 2021. Salesforce president Sebastian Niles said the EU announcement confirmed Microsoft's antitrust violations.
Microsoft has been actively trying to resolve its legal battle with Brussels for several years. In 2023, the company first proposed removing Teams from its productivity suites, stating it aimed to establish a more cooperative relationship with the EU.
It followed up with additional commitments earlier this year, including larger price differences between bundles sold with or without Teams. However, Salesforce said its legal team is still carefully reviewing Microsoft's proposal to the European Commission, signaling it isn't ready to end the dispute.
While the deal isn't final, the European Commission is reportedly ready to accept Microsoft's proposal and settle the case. Sources familiar with the matter say regulators have shifted focus toward new antitrust targets, including Apple and Google.