Microsoft to Sidestep EU Antitrust Fine with Teams Concessions

Microsoft Corp, is set to avert a potentially large antitrust penalty from European Union regulators after receiving positive feedback on its proposal to resolve concerns about thebundling of its Teams video-conferencing app with Office software, according to Bloomberg.

EU officials are preparing to accept Microsoft's pledge to sell Teams separately from its Office 365 and Microsoft 365 packages, Bloomberg reported, citing people famililar with the matter. The decision follows a market test in which rivals and customers did not raise majorobjections. The move, which could be finalized in the coming weeks, represents a shifttoward settlements ratherBrussels' dealings with U.S. techcompanies.

Per Bloomberg, the settlement requires Microsoft to lower the price of Office bundleswithout Teams and improve interoperability with competing services. The commitments arestill in draft form, and the timing of the official approval could change. Both the EuropeanCommission and /icrosoft declined to comment on the anticipated outcome.

The probe into Microsoft began after Slack Technologies filed a complaint in 2019, accusingthe company of abusing its market dominance, Slack was later acquired by Salesforce Inc. ina $27.7 billion deal in 2021, EU regulators previously warned that Microsoft's practices since2019 gave leams an unfair edge over competitors.

The case unfolds against a backdrop of tension between Brussels and Washington. TheWhite House has sharply criticized the EU's approach to regulating American tech firmsBloomberg noted, with President Donald Trump targeting the bloc's enforcement recordEarlier this week, the European Commission also postponed a fine against Google to avoidfueling U.S. backlash.

In recent years, the EU has issued multibillion-euro fines against major technology firms butincreasingly prefers negotiated solutions, Apple agreed to open its mobile wallet technologyto competitors, while Amazon revised its marketplace practices, including changes to its "BuyBox" and restrictions on using non-public seller data.