EU requests input on Microsoft Teams proposal

The European Commission has requested input from stakeholders regarding a proposal by Microsoft to address competition concerns related to its popular communication and collaboration tool, Microsoft Teams. This initiative stems from an ongoing antitrust investigation into Microsoft’s practice of bundling Teams with its widely used productivity suites, such as Office 365 and Microsoft 365. The Commission’s preliminary findings suggest that this bundling may have granted Teams an unfair distribution advantage, potentially stifling competition in the European Economic Area.

The investigation, which began following complaints from Slack Technologies (now owned by Salesforce) and alfaview GmbH, centers on whether Microsoft has abused its dominant position in the market for SaaS productivity applications for professional use. The core of the concern lies in Microsoft’s suite-centric business model, which combines multiple software functionalities into a single offering. By including Teams by default in its productivity suites, Microsoft may have limited customer choice and hindered the ability of rival communication and collaboration products to compete and innovate.

Origin of the Investigation and Initial Concerns

The European Commission formally opened its investigation into Microsoft’s bundling practices on July 27, 2023, after receiving a complaint from Slack Technologies, Inc.. A subsequent complaint from alfaview GmbH, a German provider of videoconferencing software, prompted the Commission to open a second, parallel investigation on June 25, 2024, which was then combined with the existing proceedings. The preliminary assessment by the Commission indicated that Microsoft holds a dominant position globally in the market for Software-as-a-Service (SaaS) productivity applications for professional use.

The primary concern was that, since at least April 2019, Microsoft had been tying Teams to its core SaaS productivity applications. This practice, the Commission preliminarily found, could be an abuse of a dominant position under Article 102 of the Treaty on the Functioning of the European Union (TFEU) and Article 54 of the EEA Agreement. The bundling was seen as potentially granting Teams an undue distribution advantage, as customers subscribing to Microsoft’s productivity suites did not have a choice regarding the inclusion of Teams. This could have limited the ability of competing communication and collaboration tools to enter and gain market share, thereby restricting competition and innovation to the detriment of European Economic Area (EEA) customers.

Microsoft’s Proposed Commitments and Market Testing

In response to the Commission’s concerns, Microsoft put forward a series of commitments aimed at resolving the antitrust issues. Initially, Microsoft had already introduced some changes, such as offering versions of its productivity suites without Teams at a reduced price. However, the Commission found these initial changes insufficient to address the tying practice. Consequently, Microsoft submitted revised proposals, which the European Commission then put forward for public consultation, or “market testing,” between May 16 and June 16, 2025.

The proposed commitments included several key measures designed to restore fair competition. Microsoft committed to making versions of its Office 365 and Microsoft 365 suites available without Teams at a lower price than the versions that include Teams. Furthermore, the company agreed to allow customers with long-term licenses to switch to suites that do not include Teams, even within existing contracts. These adjustments were intended to provide greater choice to businesses operating within the EEA.

Key Commitments and Their Implications

The commitments offered by Microsoft are designed to dismantle the alleged anti-competitive tying of Teams to its core productivity applications. A central element is the unbundling of Teams, allowing customers to purchase productivity suites without the collaboration tool. This unbundling is accompanied by a commitment to offer these Teams-less versions at an “appreciably lower price”. Microsoft also committed to ensuring that the price difference between suites with and without Teams would meet certain minimum thresholds, increasing this delta by 50% for some suites following the market test.

Beyond pricing and availability, Microsoft also pledged to enhance interoperability between Teams’ competitors and certain Microsoft products. This includes providing increased interoperability for key functionalities, allowing rival tools to function more seamlessly with Microsoft’s ecosystem. Additionally, Microsoft committed to improving data portability, enabling customers to more easily move their data out of Teams to facilitate the adoption of competing solutions. These measures aim to reduce switching costs for customers and foster a more competitive landscape for communication and collaboration tools.

Resolution and Future Obligations

Following the market testing and consultation period, during which both Slack Technologies and alfaview GmbH withdrew their complaints, the European Commission announced its acceptance of Microsoft’s commitments on September 11, 2025. These commitments are now legally binding under EU antitrust rules and are set to remain in force for a period of seven years, with specific obligations related to interoperability and data portability extending to ten years. The implementation of these commitments will be overseen by an independent trustee, who will also mediate any disputes that may arise between third parties and Microsoft.

The Commission’s decision to accept these commitments allows Microsoft to avoid a potentially significant antitrust fine, which could have amounted to up to 10% of the company’s annual global turnover. This resolution underscores the EU’s approach to leveraging commitments as a flexible enforcement tool within digital markets, complementing other regulatory frameworks such as the Digital Markets Act (DMA). The move is expected to restore fairer competition and provide greater choice for businesses in Europe.

Broader Regulatory Context and Digital Markets Act

This case involving Microsoft Teams is situated within a broader European regulatory push to ensure fair competition in digital markets. The European Commission’s actions are consistent with its ongoing efforts to address potential abuses of dominant positions by large technology companies. The Digital Markets Act (DMA), which came into effect in November 2022, is a key piece of legislation designed to regulate “gatekeepers” and promote contestability and fairness in the digital sector.

Microsoft has been designated as a gatekeeper under the DMA for certain core platform services, including Windows and LinkedIn, and has been making changes to comply with its requirements. While Teams was not initially one of the services targeted by the DMA, the principles of the act, such as ensuring effective data portability and interoperability, are reflected in the commitments Microsoft has made in the Teams case. The EU’s regulatory actions, including the Teams investigation, signify a concerted effort to shape the digital landscape and prevent large tech firms from stifling innovation and competition through their market power. This proactive stance aims to foster a more open and competitive digital ecosystem for businesses and consumers alike.