Microsoft tries to appease the EU with promises to cancel teams, offices

Microsoft Teams app on laptops arranged on Tuesday, June 25, 2024 in New York, USA.

Gabby Jones | Bloomberg | Getty Images

Microsoft made new commitments on Friday to unravel its workplace communications app for Office 365 and Microsoft 365 software suites to address competition issues among European regulators and avoid possible antitrust fines.

The European Commission of the European Union's executive body said in a statement on Friday that Microsoft has made a series of commitments to address concerns about teams' connections to their widely used productivity tools, such as Word and Outlook.

Under these proposals, Microsoft said it would make versions of Office 365 and Microsoft 365 without providing teams at a reduced price and allow customers to switch to tools without teams, including existing contracts.

Microsoft also promises to provide team competitors with interoperability with other Microsoft products and allow customers to move their data out of the team to compete. Interoperability refers to the practice of allowing different applications to communicate more easily.

"The proposed commitment is the result of constructive, sincere discussions with the European Commission," Nanna-Louise Linde, Microsoft's vice president of European Government Affairs, said in a statement.

“We believe they represent concerns raised by our competitors and will provide more options for European customers.”

The EU has been reviewing Microsoft's bundle with its popular office productivity suite after a legal requirement put forward by workplace messaging app Slack in 2020 said the bundle represents abuse of market power.

Slack acquired in 2021 for $27.7 billion.

Salesforce president and chief legal officer Sabastian Niles said Friday that the European Commission's announcement further affirmed that Microsoft's anti-aggressive practices with the team hurt competition and require binding, enforceable and effective remedies. ”

"We will examine the promises made by Microsoft carefully," he added.

Microsoft had previously promised to unbundle teams from the office in 2023 and sell Microsoft 365 at a discounted price without the need for chat and video conferencing services. It then expanded the move globally and offered to sell both products separately.

Friday’s news marks a Washington-based Redmond attempt to end the EU dispute and avoid potential antitrust fines.

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