Microsoft to Unbundle Teams from Office in Response to EU Antitrust Investigation
Brussels, Aug 31 (Reuters) – Microsoft has announced plans to separate its chat and video app Teams from its Office product and make it easier for competing products to integrate with its software. The move comes in response to an ongoing investigation by the European Commission into Microsoft’s tying of Office and Teams, following a complaint by Salesforce-owned workspace messaging app Slack last year.
The proposed changes by Microsoft are similar to preliminary concessions that failed to address regulatory concerns. The European Union’s competition enforcer has taken note of the company’s announcement but has declined to comment further. However, sources familiar with the matter have indicated that the Commission could still impose formal charges on Microsoft in the autumn if the company does not enhance its offer.
Teams, which was added to Office 365 in 2017, gained popularity during the pandemic due to its video conferencing capabilities. Microsoft’s vice president for European government affairs, Nanna-Louise Linde, stated that the changes aim to address two concerns raised by the EU: allowing customers to choose a business suite without Teams at a lower price, and improving interoperability between rival communication and collaboration solutions and Microsoft 365 and Office 365 suites.
The changes, set to take effect from October 1, will apply in the European Union and Switzerland. Microsoft’s core enterprise customers in Europe will have the option to switch to an Office version that excludes Teams at a price €2 per month cheaper than the version with Teams. New enterprise customers will also be able to purchase Teams as a standalone product for €5 per month. Additionally, Microsoft will introduce new support resources to assist customers and independent software vendors in transferring data from Teams to other products.
Furthermore, Microsoft plans to develop a new method for hosting the Office web applications within competing apps and services, similar to its approach with Teams. However, rivals argue that Microsoft’s current offer is unlikely to satisfy the EU antitrust watchdog.
The stakes are high for Microsoft, as the company has previously faced €2.2 billion ($2.40 billion) in EU antitrust fines for bundling multiple products together. In recent years, Microsoft has sought a more cooperative approach with regulators.
($1=0.9175 euros)
Reporting by Foo Yun Chee, additional reporting by Supantha Mukherjee in Stockholm; Editing by Sharon Singleton, Peter Graff
How does Microsoft’s decision to separate its chat and video app, Teams, from its Office product aim to address the ongoing antitrust investigation by the European Commission
Microsoft has announced that it will be separating its chat and video app, Teams, from its Office product in response to an ongoing antitrust investigation by the European Commission. The move comes after a complaint by Slack, which is owned by Salesforce, alleging that Microsoft’s bundling of Office and Teams is anti-competitive.
The decision by Microsoft aims to make it easier for competing products to integrate with its software and address concerns raised by the European Union’s competition enforcer. These proposed changes by Microsoft are similar to previous concessions that failed to satisfy regulatory concerns.
The European Commission has acknowledged Microsoft’s announcement but has refrained from providing any further comments on the matter. This development marks another step in the ongoing investigation into potential antitrust violations by Microsoft in the European market.
It’s great to see Microsoft actively taking steps to address concerns and ensure fair competition in the market. Hopefully, this will lead to more innovation and continued user satisfaction with Teams and Office products.
This shows Microsoft’s commitment to compliance and a willingness to work with regulators. It’s crucial for them to address antitrust concerns and maintain a level playing field in the market.