May 16, 2025, 11:43 AM
May 16, 2025, 12:00 AM

EU seeks feedback on Microsoft's Teams changes amid antitrust concerns

Highlights
  • The European Commission has been investigating Microsoft's bundling of Teams with Office products since 2020 following a complaint from Slack.
  • Microsoft has proposed changes to unbundle Teams from Office 365 and Microsoft 365, enabling customers to purchase without Teams.
  • Public feedback will be sought on these proposals, potentially leading to legally binding commitments.
Story

In May 2025, European Union regulators took steps to address longstanding concerns regarding Microsoft's Teams, a workplace communication tool, in relation to competition laws. The scrutiny began following a complaint lodged in 2020 by Slack Technologies, which accused Microsoft of abusing its market position by bundling Teams with its well-established Office suite. To alleviate these concerns, Microsoft offered to unbundle Teams from Office 365 and Microsoft 365, allowing clients to purchase these software suites without Teams at a discounted price. The European Commission announced that it would seek public comments on Microsoft's latest proposals, marking a pivotal moment in the ongoing investigation. This engagement aims to assess whether Microsoft's commitments are satisfactory in resolving the apprehensions raised by competitors. Microsoft has additionally pledged to enhance interoperability between Teams and rival products, as well as providing customers with an easier mechanism to transfer their data away from Teams to alternatives. These commitments came about as a result of constructive discussions over several months between Microsoft and the European Commission. The implications of Microsoft's commitments may impact the technology landscape significantly, with competitors, notably Slack, engaging closely in the feedback process. Salesforce, the owner of Slack, highlighted that the suggested changes validate their stance that Microsoft’s practices have previously hampered competition, and they will ensure careful scrutiny of Microsoft's commitments. Should these proposals be accepted, they could take effect for up to ten years, significantly altering how Microsoft's products are perceived and utilized within the competitive landscape. This situation underscores the ongoing tension between large tech firms and regulatory bodies, particularly within the EU, which has a history of stringent antitrust regulations. Microsoft faces potential fines of up to 10% of its global revenues if it fails to adhere to the agreed commitments. The collaboration and negotiations between Microsoft and EU regulators exemplify the complexities that arise in maintaining fair market competition amid technological advancements and dominant players in the software industry.

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