European Union: European Commission approved Microsoft’s proposed commitments addressing competition concerns related to Teams

On 12 September 2025, the European Commission accepted Microsoft’s proposed commitments addressing concerns over the tying of Teams to its Office 365 and Microsoft 365 suites for business customers. The Commission found that including Teams by default in these suites since 2019 has restricted competition by giving an unfair distribution advantage and limiting interoperability with rival tools. To address the concerns, Microsoft agreed to offer Office and Microsoft 365 without Teams at lower prices, give customers the option to switch from bundled versions, ensure interoperability for competitors’ products, and allow data portability from Teams. Following the Commission market test, Microsoft updated the initial commitments by widening the price difference between bundled and unbundled suites, ensuring offers are advertised side by side, and publishing detailed interoperability and portability information. The commitments will remain in force for seven years, with interoperability and data portability obligations lasting ten years. Compliance will be monitored by a trustee, with arbitration available in case of disputes. The Commission concluded that these measures restore fair competition in the market for collaboration tools in Europe, making them legally binding without reaching a formal infringement finding.