Microsoft proposes new Office and Teams pricing to avoid massive EU fine
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In a nutshell: Recent antitrust laws approved in the EU provide the European Commission with significant firepower against monopoly-loving corporations. It now has its sights set on Microsoft, which is hoping to resolve the legal dispute with a new pricing policy. Microsoft is looking into a potential change in how the company sells Office and Teams in a single package to appease European authorities and avoid a hefty antitrust fine. Three sources familiar with the matter confirmed Microsoft's diplomatic attempt to Reuters. The insiders said the company is trying to end a years-long investigation into its alleged anticompetitive practices with Office and Teams bundles.The Europen Commission investigation started five years ago after Slack filed an antitrust complaint against Microsoft. The complaint claimed that Redmond was reverting to its past monopolistic behavior by boosting Teams adoption through Office integration. Teams and other collaboration or video conferencing services saw a significant surge in demand during the COVID-19 pandemic. Microsoft was allegedly reaping all the benefits thanks to its popular productivity suite.Brussels received an additional antitrust complaint in 2023 when German videoconferencing company Alfaview asked EU antitrust authorities to stop Microsoft from bundling Office and Teams. Europe imposed a 2.2 billion fine against Microsoft a couple of decades ago, and new penalties can now go up to 10 percent of a company's global yearly revenue.Microsoft started to sell an "unbundled" version of Teams without Office in 2023. Sources say Redmond is willing to go even further, offering a wider price difference between an Office and Teams bundle and the two tools sold independently. Microsoft added Teams to Office 365 in 2017. It eventually replaced Skype for Business for 365 users' videoconferencing and collaboration needs.Reuters notes that the European Commission asked some companies for feedback regarding Microsoft's offering. They have until this week to reply. After that, the EU could perform a "formal" market test using the new prices, before evaluating Redmond's proposal. // Related StoriesAn EC insider stated that the Commission would like to move on and employ its staffing and resources against different "enemies." By accepting Microsoft's offer, the EU could focus on its latest antitrust investigations against Apple and Google.
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