Soon, many Microsoft Office customers worldwide can access cheaper subscriptions . It is not a promotion or isolated commercial gesture, but the result of years of scrutiny from Brussels. Microsoft has accepted to change its strategy to close an antitrust investigation that could have cost the company significantly. This agreement allows Microsoft to avoid a potential fine while reinforcing the European Commission’s image as the guardian of rules governing the digital market.
The European Commission confirmed that Microsoft must maintain versions of Office 365 and Microsoft 365 without Teams, its communication tool, at a clearly lower price compared to editions that include it. These conditions will be in force for at least seven years and will be complemented with interoperability and data portability commitments for a decade. The American company has indicated that it will implement these changes globally .
Microsoft Undertakes to Lower Prices and Open its Ecosystem
The origin of this situation dates back to July 2020, when Slack denounced Microsoft to the European Commission for packaging Teams within Office, claiming that it limited users’ ability to choose alternatives. Three years later, Brussels opened a formal investigation to evaluate whether this practice constituted an abuse of dominant market position in the collaborative software domain. The case focused on the impact of Teams integration on competitors such as Slack and other business communication platforms.
In response to the mounting pressure, Microsoft began taking action before a resolution arrived. In October 2023, it disaggregated Teams from its suites for commercial clients in the European Economic Area and Switzerland, offering lower prices for those opting not to include the tool. In April 2024, this policy was extended globally, removing traditional editions with Teams for new business clients and introducing “without Teams” plans along with an independent license. These steps aimed to demonstrate regulatory good faith and simplify the offering for multinational companies, but they did not suffice to close the case.
With the agreement announced this month, the measures become not only mandatory but also more ambitious. Microsoft must guarantee a significant price difference and allow customers to migrate to versions without Teams without incurring penalties. It is important to note that to benefit from these pricing adjustments, organizations must opt for the new plans or make the switch upon renewing subscriptions; there will be no automatic discounts for those maintaining current contracts.
Moreover, Microsoft commits to facilitating rival services’ integration of Office applications into their platforms, allowing users to export Teams data to other tools to reduce barriers to change. Teresa Ribera, executive vice president of the European Commission for a clean, fair, and competitive transition, remarked on these developments:
“With today’s decision, we make binding for seven years or more Microsoft’s commitments to end their linking practices that could be preventing their competitors from effectively competing with Teams. Therefore, today’s decision opens the competition in this crucial market and guarantees that companies can freely choose the communication and collaboration product that best suits their needs.”
Microsoft has published specific details about prices that will go into effect in November this year: In Enterprise plans, the price difference will be up to 8 euros per user per month ; in Business Standard and Premium plans, it will be around 3 euros . However, domestic users and students will not see any changes: their subscriptions for Microsoft 365 Personal or Family did not include payment for Teams and are not affected by the new framework.
This development arrives at a time when the Commission has increased its scrutiny of large technology companies in recent years, with substantial fines imposed on companies like Google, which was recently penalized with a €2.95 billion fine. However, Brussels faces a diplomatic challenge, as US President Donald Trump has criticized these measures, threatening to activate Section 301 of the Commerce Law in response.
Images | Ed Hardie | Microsoft