Microsoft Agrees to EU Terms to Unbundle Teams, Ending Antitrust Probe

LONDON — European Union regulators on Friday accepted Microsoft’s proposed changes to its Teams messaging and videoconferencing app, resolving a long-running antitrust investigation that had accused the company of tying Teams to its Office software suite.

The European Commission said Microsoft’s final commitments, which include unbundling Teams from Office and additional adjustments made after a market test in May and June, sufficiently address competition concerns. The commitments are legally binding for up to 10 years and allow Microsoft to avoid a potentially hefty fine.

The probe began after a complaint by Slack Technologies, now owned by Salesforce, which said Microsoft was “possibly abusive” in tying Teams to its widely used Office business software suite that includes Word, Excel and Outlook. In response, Microsoft offered to make Office 365 and Microsoft 365 packages available at a discount without Teams, to allow customers to switch to packages without Teams, and to ease interoperability with rival communication tools and data portability to competing products.

Microsoft’s vice president of European government affairs, Nanna-Louise Linde, said the company appreciated the Commission’s dialogue and would implement the new obligations "promptly and fully." The Commission’s executive vice-president overseeing competition affairs, Teresa Ribera, said the decision would "open up competition in this crucial market, and ensure that businesses can freely choose the communication and collaboration product that best suits their needs."

The Commission tested the remedies during a market consultation in May and June and asked Microsoft to refine its offer before final approval. The commitments accepted on Friday reflect those later tweaks and create a framework intended to preserve competition in enterprise communications and collaboration software across the 27-nation bloc.

The move follows a period of heightened antitrust enforcement in the EU. A week before the Microsoft decision, the Commission fined Google nearly 3 billion euros for breaching competition rules in its ad-technology business. That fine prompted a strong political reaction in Washington, where then-President Donald Trump publicly threatened retaliation against the EU action.

Analysts said the EU’s deal with Microsoft aims to balance enforcement with remedies that keep markets open without forcing a breakup of widely used software suites. By requiring long-term, legally binding commitments rather than immediate structural separation, the Commission sought to lower disruption for business customers while ensuring rivals can compete.

Under the obligations, Microsoft will be required to make it easier for third-party communications services to interoperate with Teams and to provide mechanisms for customers to transfer their data to competing platforms. The company also agreed to offer Office subscriptions without Teams at a discount and to allow existing customers to switch to plans without the app.

The settlement ends a case that had drawn scrutiny from competitors and regulators over how dominant tech firms integrate services across product lines. With the commitments now accepted, the Commission will monitor Microsoft’s compliance for the duration of the binding period.

Microsoft said it would move to implement the changes and work with customers and partners to ensure a smooth transition. The Commission said it will continue to enforce EU competition rules to ensure markets remain open and competitive for businesses and consumers across the bloc.