Microsoft slips unscathed via EU competitors probe after promising to unbundle Groups

Because of a pledge to unbundle its company messaging app Groups from its productiveness suites, Microsoft has managed to slide unscathed via a significant antitrust investigation by the European Fee that might have resulted in large fines for the tech big.

The Fee on Friday okayed Microsoft’s concessions to deal with the EU’s competitors considerations over the corporate together with Groups together with the remainder of its Workplace productiveness suite without cost, concluding a multi-year investigation that was sparked by complaints from rival workplace messaging app Slack in 2020.

Microsoft has promised that for the subsequent seven years, it’s going to present Microsoft 365 and Workplace 365 with out Groups at a lower cost, and can let prospects select whether or not they wish to pay extra so as to add the collaboration app to the suites.

The Fee has additionally managed to get Microsoft to conform to open up its APIs to allow interoperability for key options between its suite and third-party messaging and collaboration instruments, in addition to allow them to export their knowledge out of groups for the subsequent 5 years.

Microsoft didn’t instantly return a request for additional particulars about its commitments.

In its investigation, the European authority accused Microsoft of breaching competitors guidelines by bundling groups with its productiveness suites, abusing its dominant place and granting Groups an undue benefit. In its preliminary findings, the Fee additionally mentioned that benefit was improved as a result of Groups was built-in with different Microsoft 365 apps like Excel, Outlook, SharePoint, and Phrase.

Microsoft attempted to allay these considerations by implementing a partial unbundling of Groups in April 2024, however the Fee felt extra in depth adjustments had been wanted, following which the corporate provided a revised plan in Might 2025.

This approval is a win-win for each the EU and Microsoft, particularly as a result of there was no authorized battle. The Fee can say it’s wrung a giant compromise from Large Tech. Now, Microsoft is voluntarily providing some variations of each its productiveness suites with out Groups at a 50% lower cost in comparison with variations that bundle the app, worldwide.

Microsoft additionally dodged punitive measures and a giant wonderful, because the Fee’s penalties for breaching competitors guidelines can attain as much as 10% of annual world income — which, contemplating the tech big final yr recorded $245 billion in income, would have been truckloads of cash.

The Fee additionally famous that Slack and Alfaview, one other firm that had complained about Groups, have withdrawn their complaints following a market take a look at by the Fee earlier this yr.

“With right now’s resolution, we make binding for seven years or extra Microsoft’s commitments to place an finish to its tying practices which may be stopping rivals from successfully competing with Groups,” Teresa Ribera, government vice-president for Clear, Simply and Aggressive Transition on the European Fee, mentioned in an announcement.

“As we speak’s resolution due to this fact opens up competitors on this essential market, and ensures that companies can freely select the communication and collaboration product that most accurately fits their wants,” mentioned Ribera.