The European Commission has closed a key chapter in its relationship with Microsoft and its business practices in the SaaS market. After two years of investigations and complaints from rivals such as Slack and alfaview, Brussels has accepted Microsoft’s commitments to decouple its collaboration platform Teams from the Office 365 and Microsoft 365 suites, in a decision that will shape enterprise software in Europe for the coming decade.
The commitments, now legally binding, require Microsoft to offer suites without Teams at lower prices, to open interoperability with competitors, and to ensure data portability for its users. This agreement has a seven to ten-year horizon and aims to prevent the integration of Teams from reinforcing Microsoft’s dominant market position.
The origin of the conflict: tying and dominant position
Since 2019, Microsoft included Teams by default in its productivity packages, which Brussels saw as a clear case of “tying”: attaching a new product to an already dominant one. With Office and Microsoft 365 being undisputed leaders in the enterprise suite market, Teams quickly gained a massive user base, making it difficult for competitors in video calls and business chat to enter the market.
The Commission concluded that this strategy not only granted Teams an unfair distribution advantage but also limited interoperability with external solutions. The result: a more closed ecosystem that increased customer dependence on Microsoft’s suite.
The commitments: four pillars
Following a public consultation on initial proposals in 2025, Microsoft had to strengthen them. The final package includes:
- Lower-cost suites without Teams: Microsoft will offer versions of Office 365 and Microsoft 365 without Teams in the EEA at a price differential of 50% compared to the versions with Teams. Additionally, it cannot offer discounts that distort this difference.
- Flexible migration for existing customers: long-term contract holders will be able to migrate to suites without Teams and deploy them on global data centers.
- Guaranteed interoperability: competitors will be able to integrate Office Web Apps (Word, Excel, PowerPoint) into their solutions, and Microsoft must publish open documentation to facilitate integration with Outlook, Word, and other key products.
- Data portability: users will be able to export their Teams messaging histories to other platforms, a critical step to prevent user lock-in.
Supervision and sanctions
The agreement will be monitored by an independent “monitoring trustee” who will mediate disputes and report to the Commission. If Microsoft breaches the commitments, it faces fines of up to 10% of its global annual revenue or daily sanctions of 5% of its turnover.
Implications for the European SaaS market
The decision paves the way for other collaboration platforms — such as Slack, Zoom, Webex, alfaview, or emerging European solutions — to compete on equal footing.
- Real competition: it will no longer be mandatory to pay for Teams when subscribing to Office 365.
- Increased tool diversity: companies can opt for a mixed ecosystem.
- Regulatory pressure: Brussels sends a clear message that integrations limiting competition will not be tolerated in the European digital environment.
Quick timeline
- 2019: Microsoft integrates Teams by default into Office 365.
- 2023: Slack files a complaint against Microsoft; a formal investigation begins.
- 2024: alfaview joins the complaints; Brussels issues a statement of objections.
- May 2025: the Commission launches a “market test” to evaluate the initial proposals.
- September 2025: reinforced, binding commitments are approved for 7–10 years.
What it means for companies and users
For European organizations, the most visible change will be the ability to choose:
- To subscribe to cheaper suites without Teams.
- To continue using Teams, but no longer as a mandatory feature.
- To integrate third-party solutions without the previous technical barriers.
For Microsoft’s competitors, an opportunity for growth opens depending on their capacity to innovate and attract users now that the regulatory entry barrier has fallen.
FAQ
How long will the commitments last?
Generally seven years, and ten years for interoperability and data portability.
Will it be possible to migrate chats and data from Teams to other platforms?
Yes, Microsoft will be required to enable complete messaging portability.
What happens if Microsoft does not comply?
The Commission can impose fines of up to 10% of its global turnover or daily penalties of 5%.
When will suites without Teams be available?
The company has already begun deploying these versions in Europe and has announced plans to extend the measure globally.
via: Redes Sociales News