Microsoft appears poised to escape a potentially significant antitrust penalty as European Union regulators are reportedly ready to accept the tech giant’s proposal regarding its Office and Teams products, according to sources familiar with the matter.
The company has been under EU scrutiny following complaints from competitors including Salesforce-owned Slack in 2020 and German rival alfaview in 2023. These complaints alleged that Microsoft gained unfair competitive advantage by bundling its Teams chat and video app with the widely-used Office productivity suite.
In response to regulatory pressure, Microsoft unbundled Teams from Office in 2023, offering Office without Teams for €2 less than the combined package, while pricing standalone Teams at €5 monthly. The company further widened this price differential in February 2024 after competitors criticized the initial offering as insufficient. 
“The European Commission’s likely acceptance of Microsoft’s proposal represents a significant development in the ongoing dialogue between tech giants and regulatory authorities,” says technology analyst Maria Reynolds. “This reflects the delicate balance regulators must strike between fostering competition and allowing innovation.”
According to sources, Microsoft’s proposal includes enhanced interoperability terms designed to help competitors compete more effectively in the marketplace. The European Commission is expected to gather feedback from rivals and customers in coming months before making a final determination, though this timeline could shift depending on feedback received.
This development comes amid growing tensions between the United States and the European Union regarding the latter’s scrutiny of American technology companies. Former President Donald Trump, who recently won reelection, has previously threatened retaliatory tariffs against countries perceived as unfairly targeting U.S. businesses.
For Microsoft, avoiding another antitrust fine would be significant, as the company has already paid approximately €2.2 billion ($2.5 billion) in penalties over the years for various competition law violations, including product bundling practices.
This case highlights the ongoing regulatory challenges faced by tech giants operating in multiple jurisdictions with differing competition laws. For enterprises utilizing Microsoft’s productivity solutions, these changes may ultimately result in more options and potentially better integration with alternative collaboration tools.
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The European Commission and Microsoft both declined to provide official comments on the matter when contacted by reporters.
