Microsoft swerves EU antitrust fine with price deal for unbundled Teams

Core Points - Microsoft has avoided a significant EU antitrust fine by agreeing to reduce prices for Office products that do not include the Teams app, amid increasing scrutiny of U.S. tech companies by Brussels [1][2] - The agreement follows a complaint from Slack Technologies in 2020 and a similar complaint from German rival alfaview in 2023, highlighting competitive concerns regarding Microsoft's bundling practices [2] Pricing and Implementation - Microsoft will widen the price gap by 50% between Microsoft 365 and Office 365 suites that exclude Teams and those that include it, with the price difference ranging from 1 euro to 8 euros, effective for seven years [2][3] - The company has committed to enhancing interoperability to promote competition for a period of 10 years, and the offer will be implemented globally [3] Market Impact - The EU antitrust chief stated that this decision opens up competition in the market, allowing businesses to choose communication and collaboration products that best meet their needs [4] - Alfaview's CEO emphasized that Microsoft's remedies would enhance Europe's digital ambitions and promote fair market conditions, which are essential for technological diversity and innovation [6] Reactions - Microsoft expressed appreciation for the dialogue with the European Commission and committed to implementing the new obligations promptly [5] - Salesforce welcomed the concessions, viewing the settlement as a significant step forward in holding Microsoft accountable [6]