 "Microsoft faces $2.4bn by the EU, will split Teams and Office amid ongoing antitrust lawsuit")
Microsoft has announced that it will sell its chat and video app Teams separately from its Office product globally, a move coming six months after it unbundled the two products in Europe to address potential EU antitrust concerns.
The European Commission has been investigating Microsoft’s bundling of Office and Teams since 2020 following a complaint by Slack, a competing workspace messaging app owned by Salesforce.
Teams, initially added to Office 365 for free in 2017, gained popularity, particularly during the pandemic, for its video conferencing capabilities after replacing Skype for Business.
Critics argued that bundling the products provided Microsoft with an unfair advantage. Consequently, Microsoft started selling Office and Teams separately in the EU and Switzerland on August 31 last year.
In response to customer feedback and to provide multinational companies with more purchasing flexibility, Microsoft has decided to extend the unbundling globally, according to a company spokesperson.
As part of the changes, Microsoft is introducing new commercial Microsoft 365 and Office 365 suites globally that do not include Teams. Additionally, a standalone Teams offering for Enterprise customers will be available in regions outside the European Economic Area (EEA) and Switzerland.
Effective April 1, customers can opt to continue with their current licensing arrangements or switch to the new offerings.
For new commercial customers, Office without Teams will be priced between $7.75 and $54.75, while the standalone Teams offering will cost $5.25. Prices may vary by country and currency.
Impact Shorts
More ShortsDespite Microsoft’s efforts to address antitrust concerns, it may not be sufficient to avoid potential charges from the EU, with rivals criticizing the fees and compatibility of their messaging services with Office Web Applications.
Microsoft, having faced EUR 2.2 billion in EU antitrust fines over the past decade for bundling products, could face fines of up to 10 per cent of its global annual turnover if found guilty of antitrust violations.
(With inputs from agencies)
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