Microsoft Unbundles Teams from Office Globally, Addressing Antitrust Concerns

Microsoft has announced its decision to sell its chat and video app Teams separately from its Office product worldwide, marking a significant move aimed at addressing antitrust concerns, particularly in the European Union (EU).




Microsoft Unbundles Teams from Office Globally Amid Antitrust Concerns

The decision comes after the European Commission launched an investigation into Microsoft's bundling of Office and Teams following a complaint filed by Slack, a competing workspace messaging app owned by Salesforce.

Teams, initially integrated into Office 365 in 2017, gained popularity during the pandemic for its video conferencing features, replacing Skype for Business. However, rivals argued that bundling the products provided Microsoft with an unfair advantage.

To comply with EU regulations and provide multinational companies with more purchasing flexibility, Microsoft began selling Teams and Office separately in the EU and Switzerland in October 2023. Now, the company is extending this unbundling globally.

While analysts believe that the impact of unbundling Teams from Office may not be as significant as past antitrust actions against Microsoft, the move demonstrates the company's willingness to address regulatory concerns.

Microsoft's Proactive Approach May Not Entirely Shield It

Despite the unbundling, Microsoft Teams' user base has remained largely unchanged, indicating the app's entrenched position in enterprise workflows.

Microsoft's proactive approach may not entirely shield it from further regulatory scrutiny, especially regarding fees and interoperability with rival messaging services. However, it could potentially mitigate the severity of any antitrust charges.

The company's history of facing EU antitrust fines underscores the potential risks involved, with penalties amounting to as much as 10% of its global annual turnover if found guilty of antitrust violations.

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