Microsoft is poised to sidestep a major antitrust penalty in Europe after regulators signaled approval of its proposal to resolve concerns over the bundling of its Teams video-conferencing app with Office.

According to people familiar with the matter, EU officials plan to accept Microsoft’s commitment to sell Teams separately from its Office suite, following a market test in which competitors and customers voiced no significant objections.

The decision, expected to be finalized in the coming weeks, could ease tensions in EU-US relations after President Donald Trump’s criticism of Brussels’ scrutiny of American tech firms.

The European Commission had earlier cautioned that Microsoft’s bundling of Teams with its productivity suites since 2019 gave the app an unfair edge over competitors.

As part of the settlement, Microsoft will unbundle Teams from its Office 365 and Microsoft 365 subscriptions, offer discounted packages without Teams, and enhance interoperability for rival software using its services.

Sources noted, however, that the decision remains in draft form and the timeline could still shift.