Microsoft avoids EU fine with Teams unbundling agreement

• Tech giant to unbundle team collaboration app Teams from Office 365, Microsoft 365 apps with discounted price
• Microsoft to also enable customers to transfer data from Teams to rival apps, offer compatibility between Teams' rival tools and certain Microsoft apps

ISTANBUL

The European Commission announced Friday that it had accepted commitments by US tech giant Microsoft to unbundle its team collaboration platform Teams from its other apps.

"These commitments will henceforth be legally binding under EU antitrust rules," the commission said in a statement.

The ruling effectively shields Microsoft from potentially large antitrust penalties. The commission, the EU's executive branch, accused the firm last year of breaking competition laws by "abusively" combining its Office and Teams products.

The tech giant will let customers with long-term licenses convert to Office 365 and Microsoft 365 suites without Teams and provide versions of its software suites at a discounted price without Teams as part of the pledges, which were initially announced by Microsoft in May.

Additionally, Microsoft will enable customers to transfer data from Teams to rival apps and offer compatibility between Teams' rival tools and certain Microsoft products.

Following a market test of the company's first undertakings by the European Commission, Microsoft has since promised to make further commitments to address its competition concerns.

Among the first commitments were a 50% price increase between some Office 365 and Microsoft 365 suites without Teams and those with Teams, as well as an explanation that Microsoft websites promoting a suite with Teams should provide the same offer without Teams.

The commission launched an investigation in 2023 into Microsoft's alleged violation of EU competition rules by merging its chat and online meeting platform Teams with Office.