Microsoft's EU Antitrust Offer Could Prevent Hefty Fine

By Foo Yun Chee

BRUSSELS (Reuters) - Microsoft is set to stave off a possible hefty antitrust fine as EU regulators are likely to accept an offer on its Office and Teams products, three people familiar with the matter said on Wednesday, amid tensions with the United States over the EU's scrutiny of Big Tech.

Microsoft found itself back in the EU antitrust crosshairs after Salesforce-owned Slack alleged in a 2020 complaint to the European Commission that Microsoft was getting an unfair advantage by bundling chat and video app Teams with its Office product.

In 2023, German rival alfaview filed a similar complaint to the EU watchdog.

Microsoft subsequently unbundled Teams from Office in 2023, selling Office without Teams for 2 euros ($2.24) less than Office with the video app, while Teams standalone would be sold for 5 euros a month. In February, it widened the price differential after rivals said the first offer was not sufficient.

The European Commission will likely seek feedback from rivals and customers in the coming months before making a final decision and things could still change depending on the outcome of the market test and other factors, the people said.

Microsoft's proposal includes better interoperability terms to make it easier for rivals to compete, they said.

The EU competition enforcer declined to comment. Microsoft, which has been fined a total 2.2 billion euros ($2.5 billion) in past years for bundling two or more products together and other offences, did not respond to email and phone calls seeking comment.

U.S. President Donald Trump has threatened to levy tariffs against countries that penalise U.S. companies.

($1 = 0.8941 euros)

(Reporting by Foo Yun Chee. Editing by David Goodman and Mark Potter)