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Microsoft Nears EU Antitrust Resolution Over Teams Bundling, Sources Say

By  |  May 14, 2025

Microsoft appears poised to avoid a potentially significant antitrust fine from European regulators, as the European Commission is reportedly leaning toward accepting the tech giant’s revised proposal to address competition concerns over its bundling practices, according to Reuters.

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    The scrutiny began after Slack, owned by Salesforce, lodged a formal complaint with the European Commission in 2020. The complaint alleged that Microsoft was unfairly promoting its video and messaging platform, Teams, by bundling it with its widely used Office suite. The issue drew further attention when German firm alfaview submitted a similar grievance in 2023, further escalating pressure on the EU’s competition watchdog.

    In response, Microsoft modified its sales strategy later that year by unbundling Teams from Office across the European Economic Area. Under the new pricing structure, Office without Teams is now offered at 2 euros less than the combined package, while Teams is sold separately for 5 euros per month. In February, Microsoft increased the price gap in an effort to address ongoing concerns from competitors, per Reuters.

    Related: Federal Appeals Court Dismisses FTC Challenge to Microsoft’s Activision Acquisition

    Sources familiar with the matter told Reuters that Microsoft’s latest proposal also includes enhanced interoperability measures. These changes aim to provide third-party developers and communication platforms better access to Microsoft’s ecosystem, making it easier for competitors to operate on a level playing field.

    While the European Commission has not issued a public statement, insiders suggest that regulators will likely launch a market test in the coming months. This process would involve soliciting feedback from both Microsoft’s competitors and enterprise customers before reaching a final verdict. The outcome could still shift based on the responses and any emerging factors during the evaluation, the sources noted.

    This is not the first time Microsoft has faced penalties in Europe. Over the years, the company has been fined a cumulative 2.2 billion euros (approximately $2.5 billion) for a variety of antitrust violations, including past bundling practices, Reuters reported. Neither Microsoft nor the European Commission provided comments in response to recent inquiries.

    Source: Reuters