Amid growing U.S. dissatisfaction with the EU's scrutiny of tech giants, Microsoft (MSFT, Financial) is likely to implement changes to its Office and Teams product offerings to avert substantial antitrust fines. The move follows a 2020 complaint by Salesforce-owned Slack, which accused Microsoft of unfair competition by bundling its Teams video chat app with Office products. In 2023, German competitor alfaview lodged a similar complaint with EU regulators.
In response, Microsoft separated the sales of Teams and Office in 2023, pricing the standalone Office product 2 euros ($2.24) cheaper than the bundled version, while independent Teams subscriptions were set at 5 euros per month. After competitors criticized the initial proposal as insufficient, Microsoft increased the price difference further in February of this year.
Insiders suggest that the European Commission may seek feedback from competitors and customers in the coming months before making a final decision. The outcome could still change based on market test results. Microsoft's proposal reportedly includes improved interoperability terms to lower entry barriers for competitors. The EU competition authority declined to comment, and Microsoft has not responded to requests for comment.
