The long -standing Microsoft review of the European Union did not result in the expected heavy penalty as a result of the steps taken by the company. The compulsory presentation of Teams application with Office packages has led to controversy in the software market in Europe for years. The process, which started with Slack’s complaint in 2020, turned into an official investigation in 2023. The European Commission’s pre -foundations announced in 2024 revealed that Microsoft really violated the rules of competition.
According to the Commission’s statement, Microsoft provided a serious distribution advantage by adding customers to packages without offering the option to reject Teams. In addition, Teams’s limited integration with competitor practices weakened the competitive environment. Under these circumstances, the possibility of a huge punishment, which corresponds to 10 percent of the company’s annual income worldwide, came up. But the process evolved in a different direction with Microsoft’s new commitments.
Microsoft changes balances in Europe with its new obligations
Microsoft decided to separate Teams from packages in Europe before the official conclusion of the investigation. However, the Commission said that this first move was insufficient and more comprehensive arrangements should be. Thereupon, Microsoft agreed to present the Office 365 and Microsoft 365, which does not contain Teams in Europe, at lower prices. This step of the company significantly affected the course of the investigation.
In addition, Microsoft promised not to make a discounted pricing for the packages of Teams. Thus, the company aimed to prevent Teams from being able to artificially advantageously. On the other hand, the abolition of technical obstacles in order to work more efficiently with Office software of competitors was added to the commitments. These changes began to offer a more fair option for users in Europe.
The Commission conducted various attempts in May and June of 2024 to test the applicability of Microsoft’s promises. As a result of the tests, the commission, which saw that the company’s first regulations were not sufficient, demanded additional measures. Thereupon, Microsoft increased the price difference between Teams containing and non -containing packages by 50 percent. This difference has become apparent to facilitate users to turn to packages without Teams.
Another obligation adopted by the company was that the packages without Teams were clearly shown in advertising and promotions. Thus, users have achieved the possibility of comparing different options more transparently. In addition, Microsoft has enabled customers to express their messaging data on Teams. This feature was to support the competitive environment by facilitating the transition to competitor services.
The European Commission also clarified the duration of the regulations. Accordingly, Microsoft’s general commitments will be valid for seven years. However, the obligations related to workability and data portability will remain in force for ten years. This long -term follow -up is seen as a permanent step towards balance the market.
An independent supervisor will be appointed for the transparent execution of the audit process. This supervisor will supervise whether Microsoft has complied with all commitments during the specified time. The necessary reports will be forwarded to the commission and the violations will be prevented. This structure was also an indication of the firm control of the technology market in Europe.
Although Microsoft has survived the punishment in this process, competition authorities in Europe will continue to examine big technology companies more closely. Especially other giants such as Google and Apple come to the agenda due to similar applications. The EU’s determination in this direction is critical for users to make free choices in the digital market. However, the extent to which companies will comply with new rules will emerge more clearly in the following years.