Under mounting pressure from EU regulators, Microsoft has agreed to separate Teams from Microsoft 365 to address competition concerns. The tech giant faces ongoing scrutiny from the European Commission over its business practices.
Microsoft Separates Teams from Office Suite Amid EU Antitrust Crackdown
Microsoft has announced further steps to untangle its popular Teams platform from its Microsoft 365 productivity suite, in an attempt to satisfy European regulators and avoid potentially hefty sanctions.
The decision comes after years of escalating pressure from the European Commission (EC), which has accused the tech giant of engaging in anti-competitive behaviour by bundling Teams with its Office software.
Slack’s Complaint Sparks Years of Legal Scrutiny
The EC opened a formal investigation into Microsoft’s business practices in 2023, following a complaint filed in 2020 by workplace messaging platform Slack. Slack, owned by Salesforce, argued that the integration of Teams into Microsoft 365 gave Microsoft an unfair advantage, stifling competition in the fast-growing market for communication and collaboration tools.
Despite Microsoft's previous efforts to address concerns, including offering versions of Microsoft 365 without Teams in select European markets, EU regulators concluded in 2024 that the company's actions were insufficient and continued to violate competition laws.
Microsoft Pledges Global Changes to Teams Integration
In response to the EC's latest findings, Microsoft has now promised to offer its productivity suite without Teams across the entire European Economic Area (EEA) for at least the next seven years.
The tech giant has also stated it would apply the same pricing structure globally, provided the EC accepts its proposal. This move, Microsoft hopes, will demonstrate its commitment to fostering fair competition while avoiding further regulatory penalties.
A spokesperson for Microsoft said the company is working to “find solutions that address the European Commission’s concerns while providing value and choice to our customers.”
EU Still Reviewing Microsoft’s Proposals
The European Commission, however, has yet to signal whether Microsoft's latest commitments will be enough to bring the company into compliance. The EU’s executive arm is currently gathering feedback from rival firms, industry stakeholders, and the general public to determine whether Microsoft's proposed changes adequately address competition concerns.
The case is seen as part of a broader crackdown by the European Union on large technology companies, aimed at curbing monopolistic behaviour and fostering a more open and competitive digital market.
Tech Giants Under Increasing Regulatory Pressure
Microsoft is not alone in facing scrutiny from European regulators. The EC has levied multi-billion-euro fines in recent years against other tech heavyweights, including Google, Apple, and Meta, over various antitrust and data privacy violations.
Analysts believe the latest developments signal a determination by European authorities to level the playing field for smaller companies and ensure consumers have greater choice.
For Microsoft, the battle is far from over. As the European Commission reviews its proposals, the tech giant will be hoping that decoupling Teams from Microsoft 365 is enough to avoid further legal and financial consequences.
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