Microsoft Resolves EU Antitrust Probe with Landmark Commitments on Teams and Office
Microsoft has reached legally binding agreements with the European Union for up to 10 years, avoiding a significant fine by committing to separate Teams from Office and offering discounted bundles for seven years.
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Overview
- Microsoft has successfully resolved a European Union antitrust probe, preventing a substantial fine through a series of legally binding agreements.
- The core of the resolution involves Microsoft committing to separate its Teams communication platform from its Office suite for a period of seven years.
- As part of the agreement, Microsoft will offer Office 365 and Microsoft 365 at a discounted rate when purchased without the Teams application.
- These commitments, which extend for up to 10 years, aim to address competition concerns raised by the European Union regarding product bundling.
- The resolution ensures that Microsoft will adhere to these new terms within the European Union market, promoting fair competition in productivity software.
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Analysis
Center-leaning sources frame this story as a successful resolution where Microsoft skillfully avoided severe penalties while the EU secured significant concessions. They emphasize the "win-win" nature of the outcome, highlighting Microsoft's escape from "truckloads of money" in fines and the Commission's achievement of "wrung a big compromise" from Big Tech, without delving into the perspectives of the initial complainants.
"This approval is a win-win for both the EU and Microsoft, especially because there was no legal battle."
TechCrunch"These commitments open up competition in the crucial market for videoconferencing and collaboration software."
ARS Technica"Today’s decision therefore opens up competition in this crucial market, and ensures that businesses can freely choose the communication and collaboration product that best suits their needs."
ABC NewsArticles (3)
FAQ
The EU launched the investigation after Slack Technologies filed a complaint alleging Microsoft abused its dominant position by bundling Teams with its Office software, potentially harming competition.
Microsoft agreed to unbundle Teams from its Office suite, offer Office 365 and Microsoft 365 at a discounted price without Teams, allow customers to switch to versions without Teams, ensure interoperability with rival communication tools, and permit data export from Teams.
Microsoft's legally binding commitments will remain in force for up to 10 years, with the separation of Teams from Office specifically for seven years.
The EU expects these commitments to enhance competition by allowing businesses to freely choose communication and collaboration tools that best meet their needs and ensuring fair competition in productivity software.
Yes, starting April 1, 2024, Microsoft expanded the separation approach by introducing versions of Microsoft 365 and Office 365 without Teams in regions outside the EEA and Switzerland, with a new standalone Teams offering for enterprise customers.
History
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