Microsoft has proposed selling its Office productivity suite without its Teams messaging app at a reduced price and offering greater interoperability with rival products, the European Commission said on Friday.
The offer, if accepted, would mark a shift for the U.S. tech giant and could close a case sparked by a 2020 complaint from Slack Technologies, now owned by Salesforce.
Slack alleged that Microsoft illegally bundled Teams with its widely used Office suite, giving it an unfair advantage in the corporate communications market.
Under the proposed concessions, Microsoft would offer European customers the option to purchase Office 365 and Microsoft 365 without Teams at a lower price than versions that include the app. The European Commission, which enforces antitrust law in the European Union, said it is now seeking feedback from rivals and customers before making a final decision on whether to accept the offer.
Microsoft said the proposal is designed to fully address concerns raised by competitors and regulators. “We believe this resolution addresses the European Commission’s concerns while preserving our ability to meet customers’ needs,” said Nanna-Louise Linde, Microsoft’s Vice President for European Government Affairs, in a blog post. “It also reflects our commitment to support a competitive environment in Europe.”
Some context
Beyond pricing, Microsoft has agreed to improve the ability of competitors to interoperate with its products. Rivals would be granted access to technical tools and documentation, allowing them to better integrate their own communications and collaboration software with Microsoft services. This includes the ability to embed Office web applications—Word, Excel, and PowerPoint into their own platforms, as well as more seamless integration with Microsoft’s flagship productivity apps.
Crucially, the offer would also allow customers to extract their Teams messaging data and migrate it to competing platforms, a move aimed at leveling the playing field for rival developers.
The proposed pricing changes would remain in effect for seven years, while the interoperability commitments would last a decade, according to the European Commission.
What to know
Antitrust reports say Microsoft’s proactive move may help it avoid a potentially costly fine. The Commission has the authority to impose penalties of up to 10% of a company’s global turnover if it finds evidence of anticompetitive behavior.
If the EU accepts the proposal, Microsoft said it intends to harmonize the unbundled pricing and product offerings across global markets, potentially signaling a broader strategic shift in how it distributes its services worldwide.
The case has drawn attention as a key test of how European regulators are confronting the growing dominance of U.S. technology firms. For Microsoft, which has faced multiple antitrust challenges in both Europe and the United States over the years, the outcome could serve as a benchmark for future scrutiny of bundled software services in the era of hybrid work.
