Microsoft has announced that it will begin unbundling its Teams software from its Microsoft 365 and Office 365 productivity suites in EU markets starting in October. This move comes as a response to the antitrust investigation initiated by the European Commission last month, which scrutinized Microsoft’s bundling of Teams with its Office suite.
Nanna-Louise Linde, VP of Microsoft European Government Affairs, stated that these changes are being made to address the concerns raised by the European Commission while the investigation is ongoing. The changes will specifically impact Microsoft 365 and Office 365 suites for business customers in the European Economic Area and Switzerland.
With the unbundling, enterprise customers in EU markets will have the option to purchase Microsoft 365 subscriptions without Teams at a lower monthly price. Alternatively, they can choose to buy a standalone version of Teams at a list price of €5 per month or €60 per year. Linde explained that the offerings without Teams will be sold at a lower price, with a reduction of €2 per month or €24 per year.
It’s important to note that these new bundles and pricing will only affect new subscribers. Existing enterprise users will have the opportunity to renew their suites as usual and can even switch to the new “without Teams” plans if they desire. However, the unbundling primarily targets enterprises, as Microsoft plans to continue bundling Teams in its Microsoft 365 Business plans designed for small businesses. Moreover, Microsoft will also offer a no Teams option for its Business Basic, Standard, and Premium plans, priced at €1 or €2 less per month.
In addition to the unbundling of Teams, Microsoft is also focusing on improving its documentation on interoperability with rivals such as Zoom and Slack. Microsoft wants these competitors to be able to integrate their services seamlessly into Exchange, Outlook, and Teams. As part of this effort, Microsoft will allow rivals to host Office web applications within their own competing apps, mirroring the functionality provided by Microsoft Teams.
This decision by Microsoft to unbundle Teams from its Office suites was largely driven by a complaint filed by Slack with the European Commission in July 2020. Slack alleged that Microsoft engaged in anti-competitive practices by tying Teams to Office, making it difficult for users to remove and obscuring the true cost for enterprise customers.
However, Microsoft’s unbundling of Teams does not guarantee a resolution to the investigation. The European Commission will ultimately decide whether these changes are sufficient. Linde emphasized that Microsoft believes these changes strike a balance between the interests of its competitors and European business customers, providing them with access to competitive solutions at competitive prices. Microsoft remains committed to engaging with the European Commission, addressing marketplace concerns, and exploring solutions that benefit customers and developers in Europe.
In conclusion, Microsoft’s decision to unbundle Teams from its Microsoft 365 and Office 365 suites in EU markets aims to address antitrust concerns raised by the European Commission. This move provides enterprise customers with the flexibility to purchase Microsoft 365 subscriptions without Teams at a lower price or opt for a standalone version of Teams. Microsoft is also focusing on improving interoperability with rival services and allowing them to host Office web applications within their own apps. The ultimate resolution of the investigation will depend on the European Commission’s evaluation of these changes and their impact on competition in the market.
