EC approves Microsoft’s commitments over Teams bundling concerns

Core Viewpoint - The European Commission has accepted Microsoft's commitments to address antitrust concerns regarding the integration of Teams with its Office 365 and Microsoft 365 suites, making these measures legally binding under EU antitrust laws [1][6]. Group 1: Antitrust Concerns - The investigation by the European Commission focused on Microsoft's bundling of Teams with popular productivity applications like Word, Excel, PowerPoint, and Outlook, raising concerns about potential anticompetitive behavior [2][4]. - The EC's investigation, initiated in July 2023, preliminarily identified issues with Microsoft's integration of Teams since April 2019, suggesting it may violate Article 102 of the Treaty on the Functioning of the European Union [4]. Group 2: Microsoft's Commitments - Microsoft will offer versions of Office 365 and Microsoft 365 without Teams at a reduced price, allowing customers, including those with long-term licenses, to switch to these new versions [2][3]. - The company will enhance interoperability between competing products and Microsoft services and improve data portability from Teams to other platforms [3]. - Starting from November 1, 2025, customers will have the option to choose between product suites with or without Teams globally [3]. Group 3: Market Test and Pricing Adjustments - A market test conducted between May and June 2025 led to Microsoft agreeing to increase the price difference between packages with and without Teams by 50% for certain business segments [5]. - Microsoft also committed to prominently advertising both options to ensure customer awareness [5]. Group 4: Background and Reactions - The agreement follows complaints from Slack Technologies and alfaview regarding Microsoft's competitive practices, which were retracted after Microsoft's proposed commitments [6]. - EC executive vice-president Teresa Ribera emphasized the importance of collaboration tools, especially post-pandemic, and highlighted the binding nature of Microsoft's commitments to end tying practices that hinder competition [6].