Microsoft Proposes Office Without Teams to End EU Antitrust Probe

Microsoft has proposed offering versions of its Office 365 and Microsoft 365 suites without the Teams app at a reduced price to address EU antitrust concerns stemming from a 2020 complaint by Slack. The company’s commitments include allowing users to switch to Teams-free suites mid-contract, enhancing interoperability with rival communication apps, and guaranteeing data portability out of Teams for up to ten years. The European Commission has initiated a public consultation to gather feedback from rivals and customers on these proposed remedies, which, if accepted, could resolve the investigation and avoid hefty fines. This resolution is expected to remove regulatory uncertainties that have weighed on Microsoft's valuation in Europe, a key market for its cloud and Office subscription growth. Analysts maintain a positive outlook on Microsoft stock, projecting an average price target around $503, reflecting approximately 11% upside from current levels. The final decision by the EU competition authority is anticipated following the consultation period in the coming weeks.