A PYMNTS Company

Microsoft Moves Closer to Settling EU Antitrust Case Over Teams Integration

By  |  May 18, 2025

In a development in its ongoing antitrust battle with the European Commission, Microsoft has put forward additional concessions aimed at resolving a long-running investigation into its bundling of Teams with its Office 365 suite. The move may help the U.S. tech firm avoid a potentially substantial financial penalty.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The European Commission announced Friday it would begin a market test to assess Microsoft’s revised offer, signaling a possible path toward a negotiated settlement. Per Financial Times, these new commitments follow sustained scrutiny over Microsoft’s integration of its Teams video conferencing app with Office 365 — a practice critics say gave the company an unfair edge.

    The probe was originally sparked in 2020 by a complaint from Slack, now owned by Salesforce, which accused Microsoft of using its dominant position to disadvantage competitors. Although Microsoft subsequently unbundled Teams from Office 365 in the EU, regulators and rivals argued that the changes fell short of restoring fair competition.

    Now, Microsoft has pledged to continue separating Teams from Office products for at least seven years and has committed to enhancing compatibility with competing services. According to Financial Times, one such change includes integrating third-party conferencing tools like Zoom directly into Microsoft Outlook, an effort to promote interoperability.

    A market test, often seen as a precursor to formal settlement, will solicit feedback from Microsoft’s competitors and customers over the coming months. Based on the results, the Commission will decide whether the U.S. company’s new proposals sufficiently address concerns around anti-competitive behavior.

    Related: Microsoft Nears EU Antitrust Resolution Over Teams Bundling, Sources Say

    “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 said in a statement, characterizing the process as the outcome of “constructive, good-faith discussions.”

    Salesforce, however, remained cautious. Sabastian Niles, president and chief legal officer, said the company would review the offer carefully, adding that the Commission’s decision to test the market “further affirms that Microsoft’s anti-competitive practices with Teams have harmed competition and require a binding, enforceable and effective remedy.”

    The potential fine Microsoft faces could reach up to 10% of its global annual turnover if no agreement is reached. The company said it remains “hopeful” that its latest offer will resolve the issue without penalties.

    This development occurs against a backdrop of transatlantic tensions over the regulation of U.S. tech giants. As reported by Financial Times, former U.S. President Donald Trump previously criticized the EU’s approach, calling its fines “a form of taxation” and likening them to “overseas extortion.”

    Meanwhile, Microsoft is not free from other regulatory hurdles. In Brussels, the company could face a new investigation following a complaint by Google alleging unfair practices in the cloud services market. Additionally, the UK’s Competition and Markets Authority is examining Microsoft’s dominant position in the country’s cloud computing sector.

    Source: Financial Times