EU antitrust authorities consider Microsoft’s bid

Microsoft is making a major concession to European antitrust regulators in a bid to settle one of its longest-running competition disputes. The tech giant has proposed offering its Office productivity suites without the Teams collaboration app at a lower price than the bundled version — a move aimed at defusing regulatory tensions and avoiding what could have been another hefty fine from the European Union.

The European Commission confirmed on Friday it would open a market consultation with competitors and customers before deciding whether to accept Microsoft’s proposal. The offer follows a complaint filed in 2020 by Salesforce-owned Slack and a separate grievance from Germany’s alfaview, both alleging Microsoft unfairly bundled Teams with Office 365 to squeeze out rivals in the booming workplace collaboration market.

Under the new proposal, European customers would be able to purchase Office 365 and Microsoft 365 suites without Teams at a discount — with Microsoft confirming the maximum price difference would be €8 ($9). In addition, Microsoft is pledging to improve interoperability for competitors: rival services will be allowed to embed Office web apps like Word, Excel, and PowerPoint, and integrate with Microsoft’s productivity software for specific functions.

Clear and complete resolution

Crucially, Microsoft has also agreed to let customers extract their Teams messaging data for use with alternative platforms, removing a key barrier for businesses considering switching to competing services. In a blog post, Nanna-Louise Linde (Pictured), Microsoft’s VP for European Government Affairs, called the proposal a “clear and complete resolution” to concerns raised by competitors and regulators, adding that it would give European businesses more freedom of choice. The offer includes a seven-year price commitment and ten years of interoperability guarantees — a timeframe designed to offer long-term certainty for European firms and Microsoft’s competitors.

If accepted, this would close a case that has lingered since 2020 and could have landed Microsoft with another substantial fine. The company has already accumulated €2.2 billion in EU antitrust penalties over the years. Notably, Microsoft indicated that if the proposal is approved, it may harmonize these pricing and product options globally — signaling a potential shift in how the company packages and sells its Office and Teams products beyond Europe.

Why It Matters

The move comes amid growing regulatory scrutiny of Big Tech’s bundling practices in both the EU and the U.S., and reflects a wider trend: tech giants recalibrating their enterprise software strategies to avoid legal pushback and keep international markets open. The case also has geopolitical undertones, with past U.S. administrations warning against punitive actions targeting American tech firms.