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Microsoft escapes antitrust fine as EU approves Teams separation plan

Microsoft plans for collaboration with AI agents

The European Union on Friday said it has accepted Microsoft commitments to separate its Teams communication platform from its popular Office productivity apps.

The move spares Microsoft a potential antitrust fine after the European Commission last year accused the company of breaching competition rules by “abusively” bundling Teams with Office products.

“With today’s decision, we make binding for seven years or more Microsoft’s commitments to put an end to its tying practices that may be preventing rivals from effectively competing with Teams,” Teresa Ribera, executive vice-president for clean, just and competitive transition, said in a statement.

Microsoft, which first unveiled the commitments in May, will offer Office 365 and Microsoft 365 suites at a reduced price without Teams and let long-term license holders switch to Teams-free versions. The company will also ensure interoperability with competing tools and allow customers to transfer data from Teams to rival platforms.

After the European Commission market-tested its initial proposals, Microsoft offered additional commitments to address competition concerns.

“We appreciate the dialogue with the Commission that led to this agreement, and we turn now to implementing these new obligations promptly and fully,” Nanna-Louise Linde, vice president of European government affairs, said in a statement Friday.

The EU launched its antitrust investigation into Microsoft in July 2023 after a complaint from Slack, a rival chat service owned by Salesforce.

Salesforce acquired Slack for $27.7 billion in 2021.