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Microsoft to unbundle Teams software in Europe in bid to abate EU antitrust concerns

Source image: https://www.cnbc.com/2023/08/31/microsoft-to-unbundle-teams-software-in-europe-in-bid-to-abate-eu-concerns.html

U.S. tech giant Microsoft on Thursday said it will unbundle its chat and videoconference service Teams from its Microsoft 365 productivity suite, in a bid to allay European Union antitrust concerns.

Starting Oct. 1 this year, Microsoft will sell the packages without Teams at a discounted price totaling a 24 euro ($26) per year reduction in the EEA (European Economic Area) and Swiss regions. Existing customers who already own a suite with Teams can choose to stay with their current package or migrate to a product without the videoconferencing app.

The subscription-based Microsoft 365 bundle, formerly known as Office 365, previously prized Teams as the crown jewel of its workplace-geared app offerings, which include Word and Excel. The Teams software debuted in 2017 and gained ground with users as it facilitated workplace text and video communication during the Covid-19 pandemic. Microsoft in March said it intended to roll out a new version of Teams that will be twice as fast as its predecessor.

European Union regulators had in July opened an antitrust investigation into Microsoft’s bundling of Teams with other Office products, citing anti-competitive concerns.

The probe, which is ongoing, marked the first EU antitrust investigation into Microsoft in over a decade, with a Salesforce-owned Teams rival Slack submitting a complaint to European authorities on competitiveness grounds in 2020. Salesforce did not immediately respond to a CNBC request for comment.

EU officials expressed concern that the Redmond tech titan “may grant Teams a distribution advantage by not giving customers the choice on whether or not to include access to that product when they subscribe to their productivity suites and may have limited the interoperability between its productivity suites and competing offerings.”

Microsoft on Thursday pledged to also enhance resources on interoperability with Microsoft 365 and Office 365. It will also create mechanisms to host Office web applications within competing apps and services.

Source: https://www.cnbc.com/2023/08/31/microsoft-to-unbundle-teams-software-in-europe-in-bid-to-abate-eu-concerns.html

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