The European Commission has reached a deal with Microsoft to resolve competition concerns surrounding the company’s video sharing software, Microsoft Teams.
Following a complaint by rival platform, Slack, the European Commission raised concerns about the way Microsoft was bundling Teams with its other applications including Word, Excel, and Outlook.
Under the new deal, Microsoft has agreed to offer versions of its Office suites, without Teams, at a lower price.
The European Commission says this will allow users to consider switching to alternatives.
“Organisations big and small across Europe and around the world rely heavily on videoconferencing, chat and collaboration tools, especially since the coronavirus pandemic”, said the EU’s Compeittion Commissioner, Teresa Ribera.
“With today’s decision, we make binding for seven years or more Microsoft’s commitments to put an end to its tying practices that may be preventing rivals from effectively competing with Teams.
Today’s decision therefore opens up competition in this crucial market, and ensures that businesses can freely choose the communication and collaboration product that best suits their needs.”
The Commission’s investigation, initiated in July 2023, found that Microsoft holds a dominant position in the video conferencing software market.
The EU spent weeks testing Microsoft’s changes after which Slack, and another rival company, withdrew their concerns.
Microsoft’s Vice President European Government Affairs, Nanna-Louise Linde, said:
“We appreciate the dialogue with the Commission that led to this agreement, and we turn now to implementing these new obligations promptly and fully.”
Microsoft must now make good on its promises. The EU warned that the company could be fined up to 10 percent of its annual turnover if the software giant is deemed “non-compliant”.
Microsoft’s European headquarters are located in Dublin.