Amid growing tensions with the United States over EU inspection of Big Tech, Microsoft on Friday gave consumers discounted prices for Office products, excluding Teams, in an attempt to avoid a potential heavy EU antitrust charge.
The dispute began in 2020 when Slack Technologies Inc., owned by Salesforce, filed a complaint with the European Commission, accusing Microsoft of unfairly gaining an edge over competitors by combining its video and chat program Teams with its Office product.
Alfaview, a German competitor, brought a comparable complaint in 2023.
The EU competition regulator announced Friday that Microsoft has agreed to increase the price difference between some Office 365 and Microsoft 365 suites that do not include Teams and their equivalent ones that do, particularly suites aimed at enterprises, by 50%.
For seven years, the price difference will be between one and eight euros.
Additionally, the U.S. software behemoth pledged to improve interoperability for ten years in order to promote competition.
The deal from Microsoft will be implemented worldwide.
Additionally, European clients will be able to export their Teams messaging information to competitors.
In a statement, EU antitrust director Teresa Ribera stated, “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.”
Last week, Ribera angered U.S. President Trump by fining Alphabet’s Google 2.95 billion euros ($3.5 billion) for its adtech practices, which he claimed were discriminatory and unfair.
He also threatened to impose more tariffs in retaliation.
According to a statement from Microsoft’s Vice President for European Government Affairs, Nanna-Louise Linde, “We appreciate the dialogue with the Commission that led to this agreement, and we turn now to implementing these new obligations promptly and fully.”
Niko Fostiropoulos, the CEO of Alfaview, stated that Microsoft’s solutions would enhance Europe’s digital aspirations.
“It sends an important signal for Europe’s digital sovereignty: fair market conditions not only promote technological diversity but also secure the long-term innovative strength of the European market,” he stated.
Microsoft has adopted a more accommodating stance with EU antitrust authorities in recent years, despite having previously been fined 2.2 billion euros for marketing practices that included bundling two or more products together.
EU antitrust penalties might reach 10% of a business’s yearly worldwide revenue.
