New York — Microsoft is taking significant steps to allay concerns raised by European regulators regarding its Teams communication platform’s integration with its Office 365 and Microsoft 365 software suites. In a bid to pacify the European Commission, the tech giant has proposed to offer its productivity software separately, amid scrutiny over potential abuse of market dominance.
The European Commission announced on Friday that Microsoft has made commitments to facilitate the separation of Teams from its widely utilized productivity tools like Word and Outlook. These proposals are designed to provide users with an option to purchase Microsoft’s software packages at lower prices without Teams, as well as the flexibility to transition away from Teams under existing contracts.
In a statement, Nanna-Louise Linde, Microsoft’s vice president of European government affairs, expressed optimism about the proposed changes. She emphasized that these measures stemmed from constructive discussions over several months with the regulatory body. Linde asserted that the commitments represent a comprehensive resolution to the issues raised by competitors, ultimately enhancing choices for European consumers.
The scrutiny from the EU follows a 2020 complaint from the messaging platform Slack, which alleged that Microsoft was leveraging its popular Office suite to stifle competition. Slack, which was acquired by Salesforce for approximately $27.7 billion in 2021, has been vocal in its criticisms of Microsoft’s practices.
Sebastian Niles, Salesforce’s president and chief legal officer, reiterated the need for an effective remedy to address these competitive concerns. He stated that the European Commission’s announcement underlines the adverse effects of Microsoft’s practices on the marketplace and emphasized the importance of reviewing Microsoft’s proposed commitments thoroughly.
These developments unfold against a backdrop of increasing vigilance by regulatory agencies worldwide concerning the market behaviors of major technology firms. Microsoft’s willingness to separate Teams from its software offerings marks a notable shift in response to mounting pressures from both competitors and regulators.
As discussions proceed, both the tech community and consumers will be watching closely to see how these changes might reshape the competitive landscape of workplace communication tools in Europe and beyond.