Microsoft Edges Toward EU Antitrust Resolution In Teams Case

To settle the case, Microsoft has proposed selling Teams separately from its Office products, ensuring better interoperability between Teams and competing apps, and maintaining these changes for at least seven years.

Microsoft (MSFT) is on track to avoid a major antitrust fine in the European Union by offering to resolve regulators’ concerns over how it bundles its Teams video-conferencing app with its widely used Office products.

This comes after the European Union’s (EU) regulatory body, the European Commission, accused Microsoft of bundling Teams with Office 365 and Microsoft 365, giving Teams an unfair advantage over rivals. They also accused Microsoft of making it harder for Teams to work with competing services. 

The investigation began after Slack filed a complaint in 2019, claiming that Microsoft’s behavior was anticompetitive. 

To settle the case, Microsoft has proposed selling Teams separately from its Office products and ensuring better interoperability between Teams and competing apps. It has also promised to maintain these changes for at least seven years and set clear price differences between Office bundles with and without Teams.

If customers' and competitors' responses are positive, the EU could close the case without imposing a fine or declaring any formal wrongdoing.

Not only is Microsoft trying to avoid penalties and a formal antitrust ruling by making voluntary changes that satisfy regulators, but it is also trying to preempt further regulatory scrutiny globally, as the software giant says it plans to apply the same changes worldwide.

“We are hopeful that following the market test, the European Commission will conclude that the proposed commitments resolve its concerns and, in the following months, adopt a final decision closing its investigation,” the company said.

Microsoft’s stock remained flat in pre-market trade on Friday. However, the shares are up 6% this year and have gained more than 8% over the past 12 months. 

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