Microsoft Corp. (MSFT  ) has successfully evaded a substantial antitrust penalty as the European Union has agreed to the tech behemoth's commitment to separate its Teams platform from its productivity applications.

EU Clears Microsoft After Teams Separation Pledge

The EU, on Friday, announced that it has agreed to Microsoft's commitments to separate its Teams workplace communication platform from its popular productivity apps.

This decision exempts Microsoft from a possible substantial antitrust fine, following allegations by the European Commission in 2024 that the company was in breach of competition rules due to the "abusive" bundling of its Teams and Office products, CNBC reported.

Microsoft will provide versions of its Office 365 and Microsoft 365 software suites at a discounted rate without including Teams. Customers holding long-term licenses will also have the option to switch to suites that exclude Teams.

Furthermore, the company will guarantee interoperability between Teams and competing platforms and allow users to export their data from Teams to alternative products.

The EU launched its antitrust investigation into Microsoft in July 2023 after Salesforce (CRM  )-owned Slack, a competing chat service to Teams, filed a complaint.

Apple, Meta, Microsoft Adapt To New EU Rules

This development is part of a broader trend of tech giants navigating EU regulations. In July 2025, Apple Inc. (AAPL  ) was likely to avoid daily fines from the EU by accepting changes to its App Store rules and fees.

Later that month, Meta Platforms Inc. (META  ) announced a ban on political, electoral and social issue advertising in the EU due to the "unworkable requirements" of the new rules.

Earlier in April 2025, Microsoft had expressed its commitment to adhering to European laws, including the Digital Markets Act, a significant legislation designed to regulate Big Tech. This recent move by Microsoft to unbundle Teams from its productivity apps is another step in its ongoing compliance with EU regulations.

According to Benzinga Edge Stock Rankings, Microsoft has a momentum score of 73.36% and a growth rating of 97.84%.