Evolving our productivity offerings to resolve European competition concerns about Teams

At Microsoft, we believe that collaboration tools are essential to modern productivity. Microsoft Teams has become a cornerstone of how organizations connect, communicate, and get work done. At the same time, we recognize the importance of customer choice and interoperability in a dynamic and competitive digital landscape, as well as our responsibility to work productively with regulators on issues of global or regional concern.

In keeping with these values and responsibilities, Microsoft recently finalized an agreement with the European Commission (Microsoft’s “Commitments”) in which we will expand interoperability and data portability resources and make additional changes to licensing and pricing for Microsoft 365, Office 365, and Microsoft Teams. These changes are designed to enhance flexibility, support open ecosystems, and give customers more options to meet their unique needs.

Commitments to interoperability and data portability

Partners are the trusted advisors who deliver business outcomes for customers and are key to creating business value across the customer journey with their services and solutions, driving real impact. We continue to enable third-party solutions to integrate with our productivity apps.

Microsoft’s Commitments formalize and advance our dedication to Microsoft 365 interoperability. Microsoft will maintain our add-in model, allowing communication and collaboration solution providers to access Microsoft 365 and Teams in the same ways as other software development companies that provide add-ins to Microsoft 365 and Teams. Microsoft will maintain the AppSource marketplace as a distribution channel for these add-ins. In addition, to better serve our shared customers, Microsoft will continue to enable other solution providers to embed Microsoft’s Office Web Applications directly within their own solutions through the Microsoft Document Collaboration Partner Program (MDCPP).

We also believe that customers should have full control over their data. Microsoft has committed to making available APIs that enable access to customer data from Entra ID, Exchange Online, SharePoint Online, and OneDrive that are effectively equivalent to what Teams accesses from these services. Microsoft is also providing APIs and tools to help customers export their information from Microsoft Teams for use in other communication and collaboration solutions if desired. Customers can now access APIs for Teams data migration, and small businesses and end users can use our Teams data export tool, at no additional cost.

To further support these interoperability and data portability commitments, we will be launching a centralized developer resource site that consolidates these interoperability resources and provides ways for software development companies to provide feedback and seek support. Microsoft has committed to maintaining these resources over time.

Customers and software development companies can learn more about the full scope of Microsoft’s Commitments related to interoperability and data portability by referring to the text of the Commitments.

Added flexibility in licensing and pricing

We are also introducing several additional changes to our licensing and pricing structure to comply with our Commitments while remaining focused on customer needs. These changes will take effect on November 1, 2025.

First, new customers worldwide will once again be able to purchase Microsoft 365 and Office 365 Enterprise suites that include Teams. This will maximize available options, as customers will be able to choose from the full lineup of Microsoft 365 and Office 365 suites with Teams or opt for suites without Teams—on their own or paired with other collaboration solutions.

Second, the Commitments require the establishment of the following price deltas between Microsoft 365 and Office 365 suites with Teams and those without, and the maintenance of Teams standalone pricing at or above the required delta for each segment:
 

*Price deltas will be held constant in USD for the duration of the enforcement period (7 years). Exact price deltas in other currencies (including Euro) may fluctuate over time due to changes in foreign exchange rates.

**Minimum prices for Teams per user per month (pupm)—prices can increase based on selected subscription term and billing option.

Microsoft already offers versions of our business and enterprise productivity suites without Teams as well as versions of our Teams service standalone worldwide, as noted above. Microsoft will adjust the prices for those products, in accordance with the requirements of the Commitments. We will roll out these pricing changes to customers globally, effective November 1, 2025. Globally consistent licensing helps ensure clarity for customers and streamline decision making and negotiations.

Although not addressed by the Commitments, we will continue making versions of our frontline suites without Teams available globally. And we are adjusting the price of the Microsoft 365 F3 (no Teams) suite so that it is €1.00 ($1.07) less than Microsoft 365 F3 with Teams. This price change will also be made globally, effective November 1, 2025.

Finally, Microsoft’s agreement with the European Commission provides three additional guarantees for customers in the European Economic Area (EEA) purchasing directly from Microsoft:

1. EEA customers on multi-year contracts will be able to transition from suites with Teams to the corresponding suites without Teams at their annual order period for the next five years.
2. Customers who switch at their annual order period will pay the current suite price without Teams, maintaining their previous percentage discount, for the rest of their agreement term.
3. Any discounts offered by Microsoft to EEA customers on suites that include Teams will also be applicable to suites without Teams, at the same percentage rate.

While Microsoft will enable partners to offer the same guarantees on transitions and discounts to their customers, each partner may choose whether or not to provide them.

Learn more

At Microsoft, we are committed to empowering organizations with collaboration tools that enhance productivity while safeguarding customer choice and an open ecosystem for partners. These changes reflect our continued efforts to foster innovation while working constructively with regulators. For more information, refer to the partner FAQ.