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Microsoft offers price change to avoid EU antitrust fine

Feb, 11, 2025 Hi-network.com

Microsoft has proposed increasing the price difference between its Office product with the Teams app and the version without it, to avoid a potential EU antitrust fine. This comes after complaints from rivals like Salesforce-owned Slack and German competitor alfaview regarding Microsoft's practice of bundling Teams with Office. Since Teams became a part of Office 365 in 2017, it gained widespread use during the pandemic, largely due to its video conferencing capabilities.

To address concerns, Microsoft unbundled Teams from Office in 2023, offering Office without Teams for E2 less and a standalone Teams subscription for E5 per month. The European Commission is currently gathering feedback from companies, with a decision on whether to conduct a formal market test expected soon. As part of its offer, Microsoft has also proposed better interoperability terms to make it easier for competitors to challenge its products.

The EU has previously fined Microsoft E2.2 billion for similar antitrust issues in the past. If the Commission accepts Microsoft's proposal without issuing a fine or finding wrongdoing, it would likely allow the EU to focus resources on ongoing investigations into other tech giants like Apple and Google.

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