Microsoft Avoids Hefty EU Antitrust Fine, Promises Pricing Adjustments

Microsoft has dodged a potential EU antitrust fine by agreeing to offer reduced prices for Office products without Teams. This came after complaints about its bundling practices. The company will maintain a price gap for seven years and enhance competition in the market.

Microsoft has averted a significant antitrust fine from the European Union by agreeing to reduce prices on its Office suite that excludes the Teams app. This strategic move is part of Microsoft's broader efforts to address EU concerns about its business practices, especially bundling products to gain a competitive edge.

The intervention was prompted by complaints from Slack Technologies Inc. in 2020, and Germany's alfaview in 2023, both criticizing Microsoft's bundling of Teams with Office products. As a resolution, Microsoft has committed to a 50% larger price differential between Microsoft 365 and Office 365 suites that exclude Teams, effective for seven years. Microsoft will also foster interoperability to support competition globally.

This decision is seen as a shift towards more amiable relations with EU regulators, as highlighted by Microsoft vice president Nanna-Louise Linde. Despite past fines and contentious relations, the company's new commitments could bolster Europe's digital market and sovereignty, allowing businesses to choose communication tools freely.

(With inputs from agencies.)