Microsoft Stock (MSFT) Surges as EU Greenlights Antitrust Settlement - Tech Giant Dodges Regulatory Bullet

Microsoft just pulled off the ultimate regulatory Houdini act.

The EU antitrust probe that's been hanging over Redmond like a dark cloud just evaporated—thanks to some strategic concessions that Brussels apparently found acceptable. MSFT shares immediately jumped on the news, proving once again that big tech knows how to play the regulatory game better than politicians know how to write the rules.

Wall Street's reaction was predictably euphoric. Because nothing makes institutional investors happier than watching a trillion-dollar company avoid meaningful consequences. They'll probably celebrate by adding another zero to their management fees.

Meanwhile, in the crypto world, we're watching traditional finance applaud this kind of regulatory capture while simultaneously fighting tooth and nail against decentralized alternatives that actually offer real competition. The irony is thicker than a banker's bonus.

Microsoft's stock surge today demonstrates one universal truth: in traditional markets, it's not about innovation—it's about learning to navigate bureaucracy. Meanwhile, crypto assets continue building the actual future of finance, one blockchain at a time.

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The concerns relate to Microsoft’s bundling together of its group collaboration software Teams with its other productivity suites, Office 365 and Microsoft 365, for business customers in Europe. In early trading on Friday, Microsoft’s shares jumped 1.46% as of 5:49 a.m. EDT to over $508.

The announcement comes several months after news emerged that Microsoft might dodge the Commission’s anti-trust fines as the body was seeking feedback on the tech company’s offer to settle its probe into the matter. In April last year, Microsoft made the MOVE to market Teams separately from its other suites across all markets. These suites house Microsoft’s popular productivity software, such as Word, Excel, PowerPoint, and Outlook.

The Commission’s probe followed complaints by competitors, particularly Slack, the workplace communication platform owned by software giant Salesforce (CRM), which accused the American tech giant of unfair business practices. Consequently, in 2023, the European Commission opened a formal investigation into the matter and, in June last year, slammed Microsoft for violating its antitrust rules by bundling Teams with its other products since 2019.

However, Slack withdrew its complaints about three months ago after the antitrust regulator concluded a market test on the new commitments offered by Microsoft.

Microsoft Pledges Changes

According to the European Commission, one of the key pledges made by Microsoft it accepted includes that the technology company will make available to customers versions of its productivity suites that exclude Teams and are offered at a reduced price. Microsoft will also have to allow its customers with long-term licenses to switch to these suites without Teams.

Furthermore, Microsoft is to allow rival platforms to integrate their software with Teams and certain other products that it owns. The technology company is also to help facilitate the transfer of customer data out of Teams into other rival platforms.

“By helping to restore fair competition, these commitments will open up the market for other providers of communication and collaboration tools in Europe,” the European Commission said in a statement.

Is Microsoft a Buy or Sell Now?

Meanwhile, Microsoft’s shares ROSE during extended trading on Thursday after the tech giant agreed to modify its partnership deal with artificial intelligence firm OpenAI to enable the latter to restructure as a for-profit entity.

On Wall Street, MSFT stock currently boasts a Strong Buy consensus recommendation based on 33 Buy and one Hold ratings over the last three months, as seen on TipRanks. The average MSFT price target of $626.88 suggests over 25% growth potential from current levels.