Microsoft (MSFT) Antitrust Proposal May Satisfy EU Regulators

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May 15, 2025
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EU regulators might accept Microsoft's (MSFT, Financial) proposal concerning its Office and Teams products, potentially avoiding hefty antitrust fines. In 2023, Microsoft separated Teams from Office, offering Office at a reduced price without Teams, while selling Teams separately for 5 euros per month. After competitors' complaints, Microsoft widened the price gap this February. The EU may seek feedback from rivals and clients in the coming months before making a final decision, influenced by market tests and other factors. Reports indicate Microsoft suggested improved interoperability terms to facilitate competition.

Slack, owned by Salesforce (CRM), filed a complaint with the EU in 2020, alleging that Microsoft gained an unfair competitive advantage by bundling Teams with Office software. German competitor alfaview made a similar complaint in 2023.

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I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.