What changes did Microsoft promise for its Teams platform?

The European Commission resolved its investigation into Microsoft’s Teams by accepting commitments that transform how the communications platform is offered and integrated.

The probe began in response to competition complaints, notably from Slack, and highlighted concerns over unfair software bundling practices in the cloud collaboration space.

Microsoft’s concessions were substantial, addressing both product pricing and technical interoperability. These actions avoided heavy EU fines, marked a precedent in how tech giants can address regulatory scrutiny, and reshaped customer options for collaborative tools.

What sparked the EU's Teams investigation?

In July 2023, the EU initiated an investigation into Microsoft following Slack's allegations of anticompetitive practices related to the integration of Teams with Office 365.

Regulators found that Microsoft granted Teams an undue advantage by pairing it with productivity apps such as Word, Excel, and Outlook.

This investigation followed years of mounting concerns over platform bundling across workplace software markets.

Slack and German competitor alfaview both argued that Microsoft’s model limited customer choice and raised barriers for alternative platforms.

Their complaints resulted in a formal probe and ultimately led the European Commission to demand changes from Microsoft.

Did you know?
Microsoft Teams reached 320 million monthly active users worldwide in early 2025, making it one of the fastest-growing business communication platforms in history.

How does Microsoft’s binding agreement change Teams bundling?

Microsoft is now required to sell Office 365 and Microsoft 365 versions without Teams at lower prices for seven years.

Teams must be offered separately, with clear price differentiation, and Microsoft will maintain these differences to ensure fair competition.

Market tests led Microsoft to increase the Teams-free suite price gap by 50 percent in some cases.

The company extended the unbundling worldwide, introducing a standalone Teams subscription priced at $5.25 per user per month.

This shift from “free” bundled Teams represents a significant strategy realignment for enterprise customers.

What new interoperability and data options are required?

To enhance competition, Microsoft committed to improved interoperability between Teams and rival apps. The company must provide technical solutions for customers to export Teams chat data, easing the switch to alternative platforms and facilitating integration with non-Microsoft products.

These obligations cover a ten-year period, extending beyond the pricing commitments. EU competition chief Teresa Ribera stated the importance of data portability in protecting customers’ freedom to choose their tools and support market diversity across collaboration software providers.

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How will the commitments be enforced and monitored?

Microsoft’s agreement includes strict oversight. An independent monitoring trustee will supervise compliance, mediate disputes, and ensure that Microsoft follows the terms.

If unresolved issues arise, parties can request fast-track arbitration, and any breach could lead to fines of up to 10 percent of Microsoft’s annual global revenue.

European regulators see this enforcement mechanism as a new model for addressing antitrust challenges without prolonged legal battles or massive penalties, keeping companies accountable while enabling business continuity.

What global impact could these changes have?

Microsoft’s settlement has triggered changes in the company’s global policy, with Teams unbundled internationally.

This could inspire similar regulatory actions in other jurisdictions, influencing tech giants’ bundling strategies.

Customers worldwide may see increased competition, lower costs, and greater freedom to select collaborative platforms best suited to their needs.

Industry analysts predict that the antitrust resolution will guide regulatory approaches for platform competition, paving the way for more technical remedies in future cases.

It sets a new model for resolving digital market disputes and protecting enterprise customer choice.