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Microsoft ducks EU fine with Teams carve-out

by on12 September 2025


Brussels swallows concessions after years of grumbling

Microsoft has dodged a hefty EU fine by coughing up concessions on how it bundles its software, ending a four-year antitrust row.

For those who came in late. Vole's troubles began with a 2020 complaint from Slack, now part of Salesforce. Slack accused Microsoft of abusing its dominance by tying Teams to Office 365. Regulators agreed the bundling stifled rivals in the collaboration software market.

Microsoft has unbundled Teams from Office 365 in the EU, but critics dismissed the move as far too limited. In May, Redmond promised extra concessions, including keeping the split for seven years. Brussels tested the market and, after further commitments, said the changes restored fair competition.

EU competition chief Teresa Ribera said: “Today’s decision opens up competition in this crucial market, and ensures that businesses can freely choose the communication and collaboration product that best suits their needs.”

Microsoft’s vice-president of European government affairs Nanna-Louise Linde insisted the company welcomed “the dialogue with the commission that led to this agreement, and we turn now to implementing these new obligations promptly and fully.”

The case lands against a backdrop of souring relations between the EU and President Donald Trump, who is already rattling the tariff sabre after Brussels slapped Google with a multibillion-dollar penalty.

Last modified on 12 September 2025
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