Microsoft’s EU Antitrust Case Nears Resolution: EU Commission seeks feedback on remedy proposals

The European Commission (EC) is currently evaluating public feedback on Microsoft’s proposed commitments to address antitrust concerns related to the bundling of its Teams collaboration tool with Office 365 and Microsoft 365 suites. This development follows a formal investigation initiated in July 2023, prompted by complaints from Slack Technologies and Alfaview GmbH, alleging that Microsoft’s practices hindered competition in the communication and collaboration software market.  

Background of the Investigation

In June 2024, the EC issued a Statement of Objections, expressing the preliminary view that Microsoft may have breached EU competition rules by tying Teams to its productivity suites, thereby granting it an undue advantage over competitors.  The Commission’s concerns centered on the potential restriction of competition and the limitation of customer choice in the market for communication and collaboration tools. 

Microsoft’s Proposed Commitments

In response to the EC’s concerns, Microsoft has proposed a series of commitments aimed at restoring effective competition: 

• Unbundling Teams: Offering versions of Office 365 and Microsoft 365 without Teams at a reduced price, applicable to both new and existing contracts. 
• Enhanced Interoperability: Improving compatibility between Microsoft products and competing communication tools, facilitating seamless integration. 
• Data Portability: Enabling customers to transfer their data from Teams to alternative solutions more easily. 

These commitments are proposed to be legally binding for a period of up to ten years.  

For organizations, these developments underscore the importance of vigilant software asset management (SAM). The unbundling of Teams from Microsoft’s productivity suites may lead to changes in licensing structures and costs. Organizations should assess their current software deployments and licensing agreements to ensure compliance and optimize expenditures. 

Additionally, the emphasis on interoperability and data portability may influence decisions regarding the adoption of communication and collaboration tools, encouraging a more diversified software ecosystem. 

Next Steps

The EC is currently conducting a market test, inviting feedback from stakeholders on Microsoft’s proposed commitments. If the commitments are deemed satisfactory, the Commission may close the investigation without imposing fines.  

Organizations should stay informed about the outcome of this case, as it may set precedents affecting software licensing practices and competition in the technology sector.