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EU · remedy · ~10 min read

EU Microsoft Teams unbundling investigation

2023–2025 · team collaboration software, videoconferencing, office productivity suites

Europe is investigating whether Microsoft illegally bundled Teams video chat into Office subscriptions, making it hard for Slack and others to compete. Microsoft now sells Office without Teams in many markets and cut prices—but the EU probe is not closed. No fine or final ruling yet.

The story

During COVID-19 lockdowns, videoconferencing became essential. Microsoft Teams rode bundled distribution through Microsoft 365 subscriptions used by millions of employers and schools.

Slack—now part of Salesforce—complained to EU regulators that customers effectively got Teams 'free' inside suites they already paid for, while rivals had to charge separately.

The European Commission opened a formal investigation in July 2023 under abuse-of-dominance rules, echoing historic Microsoft media-player tying cases but in cloud productivity.

Microsoft responded by unbundling Teams from Microsoft 365 in Europe and later worldwide, offering lower-priced suites without Teams and standalone Teams plans.

Regulators must decide whether those changes fully undo alleged harm or arrived too late after rivals lost share.

The case intersects with Microsoft's gatekeeper status under the DMA for Windows and LinkedIn, though Teams tying is primarily classic Article 102 territory.

Investigation continues; Microsoft has not been fined or found to have abused dominance in a final decision.

Why it matters

Office defaults shape which chat tool your employer uses—often without a explicit vote.

Bundling cases in cloud software update 1990s PC tying fights for subscription era.

Successful unbundling could embolden rivals and independent procurement teams.

Shows EU willingness to probe SaaS suites, not just app stores and search.

Pricing changes may affect IT budgets even when products look similar.

What was claimed

Microsoft tied Teams to dominant office productivity suites illegally.

Bundling foreclosed Slack and other standalone collaboration tools.

Microsoft withheld interoperability information needed for fair competition.

Remedies must restore equal footing, not just cosmetic SKU splits.

The other side

Microsoft says Teams competes with Zoom, Google Meet, and Slack on merit.

It argues unbundling and new prices address any competitive concerns.

Microsoft maintains integration benefits customers who want unified workflows.

It points to rapid Teams improvements during the pandemic as consumer welfare gains.

What it means for you

Your employer may renegotiate Microsoft contracts with optional Teams SKUs.

If you prefer Slack or Zoom, IT departments gain leverage from unbundling.

No refunds for past bundled years are on the table yet.

Global pricing changes may appear even outside Europe.

The Commission closed the file with commitments on 12 September 2025. There was no infringement fine.

Bottom line

EU Microsoft Teams closed on 12 September 2025 as a commitment case. Microsoft must sell EEA Office suites without Teams and open interoperability. It is no longer an open investigation.

Timeline

  1. 2020

    Rival complaint

    Salesforce-owned Slack alleged Microsoft leveraged Office dominance to crush standalone chat tools by bundling Teams.

  2. July 2023

    EU opens case

    The Commission began a formal probe into tying and possible refusal to share interoperability information.

  3. March 2024

    Microsoft unbundles globally

    Microsoft separated Teams from core suites worldwide, cutting prices for Office without Teams in Europe first.

  4. Ongoing

    Commission evaluates fixes

    Regulators assess whether unbundling and new pricing restore fair choice or leave competitive harm uncured.

Key dates

Slack complaint to EC (reported)
2020
Formal investigation opened
July 2023
Microsoft global unbundling offer
March 2024
Investigation ongoing
2024–ongoing

Formal snapshot

Summary: The European Commission investigated whether Microsoft tied Teams to Office 365 and Microsoft 365. The case closed with binding commitments, not an infringement fine.

Regulator / plaintiff argument: Bundling Teams with ubiquitous productivity subscriptions made it costly for business customers to choose standalone competitors, especially during pandemic remote-work shifts.

Outcome: On 12 September 2025 the Commission made Microsoft's Article 9 commitments binding in AT.40721 and AT.40873. Microsoft must offer EEA suites without Teams, with switching, interoperability, and data portability. Core duties last seven years; interoperability and portability last ten. Slack and alfaview withdrew their complaints.

Conduct tags

tyingabuse of dominanceself preferencingmarket access

Laws referenced

  • TFEU Article 102 — Art. 102 TFEU
  • Digital Markets Act — Reg. (EU) 2022/1925

Companies

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