Cyanobacterial blooms and cyanotoxins occur in freshwater lakes and reservoirs all over the world. Bacterial degradation of microcystins (MC), hepatotoxins produced by several cyanobacterial species, has also been broadly documented. However, information regarding MC biodegradation in European water bodies is very limited. In this paper, the occurrence and identification of MC biodegradation products was documented for 21 European lakes and reservoirs, many of which have well-documented cyanobacterial bloom histories. Varying cyanobacterial abundance and taxonomical composition were documented and MC producers were found in all the analysed samples. Planktothrix agardhii was the most common cyanobacterial species and it formed mass occurrences in four lakes. MC biodegradation was observed in 86% of the samples (18 out of 21), and four products of dmMC-LR decomposition were detected by HPLC and LC-MS methods. The two main products were cyclic dmMC-LR with modifications in the Arg-Asp-Leu region; additionally one product was recognized as the tetrapeptide Adda-Glu-Mdha-Ala. The composition of the detected products suggested a new biochemical pathway of MC degradation. The results confirmed the hypothesis that microcystin biodegradation is a common phenomenon in central European waters and that it may occur by a mechanism which is different from the one previously reported. Such a finding implies the necessity to develop a more accurate methodology for screening bacteria with MC biodegradation ability. Furthermore, it warrants new basic and applied studies on the characterization and utilization of new MC-degrading strains and biodegradation pathways.