Tech giant Microsoft will now allow customers worldwide to buy their Office suite without the famous Teams collaboration app.
Teams No Longer Included in Office
According to a company announcement on Monday, Microsoft will no longer sell the Teams collaboration app as part of their Microsoft 365 Office bundle.
Hybrid Work Collaboration Software
The Teams app is a piece of videoconferencing software that has become a staple in the Office bundle, allowing hybrid workers to communicate 24/7, share files, and work together virtually.
Ongoing European Anti-Trust Investigation
However, the app has come under serious scrutiny in the last few years and the decision has come amid an ongoing antitrust investigation into the company by the European Commission.
Slack Instigates Major Scrutiny
The EU‘s executive commission, which works to enforce fair competition in business, began investigating Microsoft after Slack, a major competitor in the hybrid work tech space, filed a formal complaint against the tech company.
Accusations of Squashing Competition
Slack Technologies accused Microsoft of anti-competitive and self-serving practices that used its own dominance in the market to crush competition.
Potential Violation of EU Laws
The company posited that including Teams in the extremely popular Office package, which also offered software like MS Word and Excel, was a purposeful anti-competitive decision.
If the accusations were true, this would be a violation of EU laws.
Microsoft Agrees to Co-Operate
The EU investigation began in July 2023. Microsoft appeared cooperative, announcing that they “will continue to cooperate with the Commission and remain committed to finding solutions that will address its concerns.”
Removing Teams in Europe
Part of this cooperation meant the decision to give customers in the European Union the option of buying the Office package without Teams and at a lower price.
An Extension of 2023 Move
They first unbundled Teams for EU customers in October last year. Now, that decision has been extended to Microsoft customers all over the world.
“Extending the Steps We Took Last Year”
“We are extending the steps we took last year to unbundle Teams from M365 and O365 in the European Economic Area and Switzerland to customers globally,” a Microsoft spokesperson said in a statement announcing the change.
Addressing Feedback
“Doing so also addresses feedback from the European Commission by providing multinational companies more flexibility when they want to standardize their purchasing across geographies,” the statement continued.
“Ensuring Clarity for Customers”
The spokesperson claimed that the decision would “ensure clarity for our customers” regarding the current antitrust scrutiny the corporation and its software have endured.
Still Available as an Individual Product
While the Teams app will no longer be included in the Office bundle, it will still be available to businesses and individuals as an individual product.
First Introduced in 2017
The Teams app was first introduced to Microsoft users in 2017 as a free business alternative to Skype.
Pandemic Popularity
Similar to videoconferencing software like Zoom, Teams exploded in popularity during the COVID-19 pandemic as millions of people turned to hybrid work during lockdowns.
Available on April 1
The new Office bundle becomes available on April 1, and existing customers can switch packages, update their licensing deal, or continue with their pre-existing software.
New Cost Options for Office
From now on, individual Teams software will cost $5.25. Office cost options without Teams will range between $7.75 and $54.75.
Will It Be Enough?
However, it is unclear if these recent moves will be enough to divert potential anti-trust charges from the European Commission if anti-competition allegations are proven legitimate.
$2.4 Billion in Fines
Over the last ten years, the tech giant has accumulated approximately $2.4 billion in anti-trust fines in the European Union alone. These fines come from similar issues where multiple products were bundled together.
The End Is Near
The European Commission investigation is expected to conclude in the coming months. If Microsoft is charged, it could face fines equivalent to 10% of its annual global turnover.
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The content of this article is for informational purposes only and does not constitute or replace professional financial advice.
