Microsoft has submitted new commitments to European Union regulators, aiming to resolve a multiyear antitrust probe over the bundling of its Teams app with Office 365 and Microsoft 365 software suites. The company's latest move comes as the European Commission opens a public consultation on the proposed remedies, potentially signaling the end of a dispute that began with a complaint by Slack Technologies in 2020.
The European Commission announced Friday it would review Microsoft's proposed changes, which include selling Office packages without Teams at a reduced price and allowing customers to switch between bundled and unbundled versions mid-contract. Microsoft also pledged to enhance interoperability between Teams' rivals and its own software and enable easier data transfers out of Teams.
"The proposed commitments are the result of constructive, good-faith discussions with the European Commission over several months," said Nanna-Louise Linde, Microsoft's vice president for European government affairs. "We believe that they represent a clear and complete resolution to the concerns raised by our competitors and will provide European customers with more choices."
The EU's antitrust inquiry was launched after Slack, now owned by Salesforce, accused Microsoft of abusing its market power by tying Teams to its dominant productivity software suite. In 2023, Microsoft attempted to preempt EU action by offering an unbundled version of Microsoft 365, later extending the offer globally.
The Commission, however, rejected those earlier remedies as insufficient. On Friday, it stated it would now "invite all interested parties to submit their views" on Microsoft's updated proposal. If accepted, the commitments would become legally binding and remain in force for up to 10 years.
Salesforce President and Chief Legal Officer Sabastian Niles responded to the Commission's announcement by saying, "Microsoft's anticompetitive practices with Teams have harmed competition and require a binding, enforceable, and effective remedy." He added, "We will carefully scrutinize Microsoft's proposed commitments."
Failure to meet the terms of a finalized agreement could result in fines of up to 10% of Microsoft's annual global revenue-potentially amounting to tens of billions of euros.
