Microsoft separated Teams from Office 365 and Microsoft 365 business suites after the European Commission investigated whether bundling the collaboration app with those suites could restrict competition. The Commission accepted binding commitments from Microsoft in 2025; the sourced record does not show a fine imposed in this case. From 1 November 2025, commercial customers worldwide could again choose qualifying suites with Teams or without it, under Microsoft’s revised licensing terms.
Why did Microsoft unbundle Teams?
The European Commission’s concern was that including Teams in established productivity suites might give it a distribution advantage: customers could not choose whether to include Teams when buying those suites. The Commission also raised concerns that Microsoft may have limited interoperability between its productivity software and competing communication and collaboration products. These were questions under investigation, not findings of infringement when the investigation opened.
Slack Technologies lodged a complaint with the Commission on 14 July 2020, alleging that Microsoft illegally tied Teams to its productivity suites. On 27 July 2023, the Commission opened a formal investigation into whether Microsoft’s bundling of Teams with Office 365 and Microsoft 365 business suites might breach EU competition rules. Opening the case did not prejudge its outcome. The Commission’s announcement is available in its 27 July 2023 press release.
Teams is Microsoft’s cloud communication and collaboration service, with messaging, calls, video meetings, file sharing and integrations. The competition issue was not simply whether businesses used Teams; it was whether bundling and interoperability practices could make it harder for customers or rival services to compete.
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What happened, and was Microsoft fined?
The proceeding ended with binding commitments accepted by the Commission in 2025. The available official record describes a commitments-based resolution, not a fine imposed in this case. That is why “to avoid an EU fine” should be understood as a reference to regulatory risk, not a claim that the Commission assessed a fine and then waived it.
| Date | Event |
|---|---|
| 14 July 2020 | Slack Technologies submitted its complaint to the European Commission. |
| 27 July 2023 | The Commission opened its formal investigation into Teams bundling. |
| 31 August 2023 | Microsoft announced that it would unbundle Teams from Microsoft 365 and Office 365 suites in the EEA and Switzerland from 1 October 2023. |
| 1 April 2024 | Microsoft introduced commercial suites without Teams and standalone Teams options outside Europe, extending the approach worldwide. |
| 25 June 2024 | The Commission initiated a second proceeding, AT.40873, and issued a Statement of Objections about Microsoft’s Teams bundling. |
| 12 September 2025 | Microsoft announced final commitments and planned changes; the Commission’s decision summary identifies this as the decision date. |
| 1 November 2025 | Microsoft’s relevant global commercial packaging and pricing changes took effect. |
The Commission decision summary, published in the Official Journal of the European Union, covers cases AT.40721 and AT.40873. Microsoft also outlines its commitments on its Teams and Microsoft 365 commitments page.
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Can businesses still buy Microsoft 365 with Teams?
Yes. Microsoft’s current licensing FAQ says commercial customers worldwide can buy Enterprise suites with Teams as well as corresponding suites without Teams. Before the change took effect on 1 November 2025, new customers could not buy those Enterprise suites with Teams in the EEA from October 2023 and elsewhere from April 2024. The updated options apply to commercial licensing; Microsoft says consumer, academic, US Government and nonprofit-specific SKUs are not currently affected.
Microsoft lists the following minimum price differences between specified suites with and without Teams. These are the current figures in Microsoft’s licensing FAQ, not a complete quote for a particular customer or contract.
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| Suite or option | Minimum price difference listed by Microsoft |
|---|---|
| Microsoft 365 E3/E5 and Office 365 E3/E5 | €8.00 ($8.55) |
| Microsoft 365 Business Standard/Premium and Office 365 E1 | €3.00 ($3.21) |
| Microsoft 365 Business Basic | €1.50 ($1.61) |
| Microsoft 365 F3 | €1.00 ($1.07) |
| Standalone Teams Enterprise / Teams EEA | Minimum standalone price: €8.00 ($8.55) |
| Teams Essentials | Minimum standalone price: €3.00 ($3.21) |
Microsoft says the USD price differences remain constant during the seven-year enforcement period, while exact amounts in other currencies can fluctuate with exchange rates. Check Microsoft’s current licensing FAQ and documents for the applicable SKU, currency and customer terms before comparing a live quote.
What protections apply to EEA customers?
Some of the commitments address customers in the European Economic Area specifically. Microsoft says qualifying customers with multi-year contracts can move from a Teams-included suite to the corresponding suite without Teams at an annual order period during the next five years, while keeping their percentage discount. Microsoft also says discounts on EEA suites that include Teams must be available at the same percentage on no-Teams versions. Partners may choose whether to offer the same transition and discount guarantees.
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These terms depend on customer eligibility, contract and SKU. They should not be assumed to apply identically to every business, region or partner transaction.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How do the commitments address interoperability and data?
The response was not limited to separate licensing. Microsoft says it will maintain an add-in model and the AppSource distribution channel, enable other providers to embed Office Web Applications through the Microsoft Document Collaboration Partner Program, and provide APIs and tools to export Teams information for use in other collaboration services. Microsoft describes the announced Teams data export tools as available at no additional cost.
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For an organization weighing alternatives such as Slack, these measures concern whether competing services can work with Microsoft productivity software and whether Teams information can be moved for use elsewhere. They do not, by themselves, establish that a particular rival integration or migration will meet an organization’s technical or compliance needs.
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What should a business check before changing its subscription?
- Exact suite and SKU: Compare the same Microsoft 365 or Office 365 plan, including which apps and services are included.
- Price and currency: Treat Microsoft’s figures as minimum deltas; confirm the live price and currency for the specific offer.
- Customer and billing region: EEA switching and discount guarantees are distinct from the broader worldwide availability of commercial suite options.
- Contract status: Check whether the subscription is new, renewing or covered by a qualifying multi-year contract and annual order period.
- Operational needs: Consider whether integrations, interoperability, data export or continued use of a competing collaboration service matter to the organization.
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
