In a strategic move aimed at addressing antitrust concerns, Microsoft has announced that it will begin selling its popular chat and video application, Teams, separately from its Office suite of products on a global scale. This decision comes six months after the tech giant initiated a similar unbundling effort in Europe, a move perceived as an attempt to evade potential fines from the European Union.
The European Commission has been investigating Microsoft’s practice of bundling Office and Teams since 2020, following a complaint filed by Slack, a competing workspace messaging app owned by Salesforce. Teams, initially introduced to Office 365 users for free in 2017, gained widespread popularity, especially during the pandemic, owing to its robust video conferencing capabilities.
Critics argued that packaging Teams with Office provided Microsoft with an unfair advantage in the market. Consequently, Microsoft began selling the two products separately in the EU and Switzerland last year.
To address concerns and provide greater flexibility to customers, Microsoft has decided to extend the unbundling initiative globally, according to Reuters. Customers outside the European Economic Area (EEA) and Switzerland will now have the option to purchase Office suites without Teams included. Additionally, Microsoft will introduce a standalone Teams offering for enterprise customers in these regions.
The new commercial Microsoft 365 and Office 365 suites, excluding Teams, will be available starting today, April 1st. Existing customers can choose to continue with their current licensing agreements or opt for the new offerings upon renewal. For new commercial customers, Office prices without Teams will range from $7.75 to $54.75, while the standalone Teams package will be priced at $5.25. Pricing may vary based on geographical location and currency.
However, industry sources suggest that Microsoft’s unbundling efforts might not fully alleviate antitrust concerns. Rivals continue to criticise the fees associated with using their messaging services alongside Office Web Applications, raising doubts about Microsoft’s compliance with fair competition practices.
Microsoft’s move reflects a broader trend of tech companies facing increased scrutiny from regulators worldwide. As Microsoft navigates these challenges, its decision to sell Teams separately underscores the company’s commitment to addressing regulatory concerns while continuing to offer innovative solutions to its global customer base.
