Microsoft to unbundle Teams and Office amid antitrust scrutiny

Microsoft Teams in EU: Microsoft has announced that it will begin selling its chat and video app Teams separately from its Office product on a global scale, marking a departure from its previous bundling strategy. The decision comes in the wake of ongoing antitrust scrutiny, particularly in Europe, where the company faced the threat of fines over its tying of Office and Teams.

The move follows a six-month period during which Microsoft separated the two products in Europe, a measure that addresses concerns raised by competitors and regulatory authorities. The European Commission has been investigating Microsoft's bundling practices since 2020, prompted by a complaint from Salesforce-owned CRM.N, the parent company of competing messaging app Slack.

Teams, initially integrated into Office 365 in 2017, saw a surge in popularity during the pandemic, particularly for its video conferencing feature. However, rivals argued that bundling the products together gave Microsoft an unfair advantage in the market.

Global unbundling efforts

In response to feedback and to provide multinational companies with more flexibility in their purchasing decisions, Microsoft has extended its unbundling efforts globally. This includes introducing new commercial Microsoft 365 and Office 365 suites that exclude Teams in regions outside the European Economic Area (EEA) and Switzerland, as well as offering a standalone Teams option for enterprise customers in those regions.

Effective April 1, customers have the option to maintain their current licensing arrangements or transition to the new offerings. Prices for Office without Teams for new commercial customers range from $7.75 to $54.75, while standalone Teams will cost $5.25. It's worth noting that prices may vary depending on location and currency.

Despite these measures, Microsoft may still face antitrust charges from the EU, particularly concerning the level of fees and interoperability of competing messaging services with Office Web Applications. The company, which has previously incurred significant fines for antitrust violations, could face penalties of up to 10 per cent of its global annual turnover if found guilty.

(With Reuters inputs)