2.1.170 Part 1 Section 17.4.67, tcFitText (Fit Text Within Cell)
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For additional notes that apply to this portion of the standard, please see the notes for tcPr, §17.7.6.8(b); tcPr, §17.7.6.9(a).
a. The standard defines no special behavior for a cell containing text with line breaks.
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In Word, the text in the first paragraph in the cell is fit, but subsequent paragraphs are not.
b. The standard states that inter-character spacing shall be reduced to fit text.
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In Word, the horizontal size of non-space characters is also reduced to fit text.