Microsoft avoids EU fine: Word, Excel and Powerpoint to become cheaper without Teams

Brussels. The US tech giant Microsoft and the EU Commission have reached an agreement in the antitrust dispute over office software packages, averting a potential multi-billion euro fine. The Commission announced this in Brussels on Friday. The authority had accused the US company of violating antitrust rules: Microsoft was giving its own video software, Teams, an unfair advantage because it is included in the office software packages Office 365 and Microsoft 365.

The criticism: Customers automatically receive access to Teams with these packages, leaving them little incentive to choose another, potentially better provider. Brussels considered it proven that Microsoft was exploiting its market power in office software to the detriment of its competitors. Previously, competitor Slack had filed a complaint with the EU Commission.

Microsoft has promised that its software packages, including Word, Excel, and PowerPoint, will now also be available without Teams at a significantly lower price. This summer, the US company had already increased the price difference between software packages with and without Teams by 50 percent due to pressure from Brussels. The company has also committed to making its office software more compatible with other companies' programs. The Commission has accepted these commitments and thus closed the case without imposing a fine.

Nanna-Louise Linde, Vice President for European Government Affairs, told RND: "We appreciate the dialogue with the Commission that led to this agreement and will now work to implement these new commitments promptly and fully." The company plans to publish an overview of current prices soon.

"Organizations large and small across Europe and around the world rely heavily on video conferencing, chat, and collaboration tools, especially since the coronavirus pandemic," emphasized EU Vice-President Teresa Ribera. "Today's decision opens up competition in this important market and ensures that companies can freely choose the communication and collaboration software products that best meet their needs."

Microsoft's commitment is initially binding for seven years. If the US company fails to comply, the Commission can impose a fine of up to 10 percent of its global annual turnover.

Using the Teams software, office workers can hold video meetings and exchange messages, texts, and documents. Competitor Slack operates similar software, and other alternatives include Alfaview, Zoom, and Google Meet.