Microsoft Dodges EU Fine by Restructuring Office Pricing
Microsoft avoided a potential fine from the EU by agreeing to separate its Teams app from Office products and adjusting prices. This move followed complaints from companies like Slack and alfaview about bundling practices. The pricing and interoperability changes aim to promote fair competition within the tech sector.
Microsoft has sidestepped a significant EU antitrust penalty by agreeing to reprice its Office products, excluding the Teams app. This development comes as the European Commission intensifies its examination of major U.S. tech firms.
Triggered by a 2020 complaint from Slack Technologies, owned by Salesforce, Microsoft was accused of bundling its Teams app with Microsoft Office to gain an unfair market advantage. Following similar grievances from Germany's alfaview in 2023, Microsoft committed to widening the price disparity between certain Microsoft 365 and Office 365 suites without Teams and their counterparts that include Teams, by 50%, effective globally for seven years.
Nanna-Louise Linde of Microsoft expressed appreciation for the productive dialogue with the Commission that culminated in the agreement. By implementing these remedies, Microsoft seeks to foster competition and enhance technological diversity in Europe's digital market, a sentiment echoed by industry peers and EU regulators.
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- Slack
- alfaview
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