The European Commission has accepted Microsoft’s pledge to unbundle Teams from its Office and Microsoft 365 productivity suites, ending a years-long antitrust investigation without fines. The probe began in 2020 after Slack complained that Microsoft was abusing its dominance by bundling Teams for free.
Microsoft’s Commitments
As part of the agreement, Microsoft will sell versions of Office and Microsoft 365 without Teams for seven years at a reduced price. Customers can still opt to add Teams for an additional fee. The company also agreed to open its APIs to allow better interoperability with third-party messaging platforms and to let users export Teams data for five years. These commitments are designed to ensure fair competition in the workplace collaboration market.
Regulatory Pressure and Outcome
Microsoft initially tried a partial unbundling in April 2024, but regulators said the move did not go far enough. In May 2025, the company offered a broader set of changes, which were ultimately approved. By doing so, Microsoft avoided the risk of massive penalties — up to 10% of global revenue, which could have run into tens of billions of dollars.
Both Slack and Alfaview, which had lodged complaints, withdrew their cases after the Commission market-tested Microsoft’s revised plan. In a statement, Microsoft said it welcomed the resolution and would implement the new obligations promptly. European officials called the decision a major step toward restoring competition and giving businesses the freedom to choose collaboration tools that best suit their needs.
What The Author Thinks
While the EU can claim it extracted concessions from Big Tech, Microsoft emerges with minimal damage. Many customers are likely to pay the additional fee to keep Teams bundled, preserving Microsoft’s influence in the collaboration space. The company avoided a drawn-out legal fight and a potentially crushing fine, while still maintaining strong brand dominance. This looks more like a strategic retreat than a genuine loss.
Featured image credit: Praswin Prakashan via Unsplash
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