Microsoft to Unbundle Teams and Office in Response to EU Antitrust Concerns
In response to lingering European Union (EU) antitrust concerns, Microsoft has announced its plans to separate its popular chat and video app, Teams, from its Office product. The decision comes after the EU’s competition enforcer, the European Commission, launched an investigation into Microsoft’s tying of Office and Teams following a complaint by Salesforce-owned rival app, Slack, in 2020.
The proposed changes made by Microsoft are similar to preliminary concessions made in the past, which failed to fully address regulatory concerns. As a result, the EU competition enforcer is now considering formal charges against the tech giant unless the company strengthens its offer to rectify the situation.
During the COVID-19 pandemic, Teams gained immense popularity among users and even replaced Skype for Business within Office 365. However, the EU had concerns about customer choice and the interoperability of rival products. Microsoft’s latest changes aim to address these concerns and ensure a fair market for all players.
Starting from October 1, the changes will be put into effect in the EU and Switzerland. Microsoft’s core enterprise customers in Europe will have the option to purchase a version of Office without Teams at a lower price. Additionally, new enterprise customers will be able to buy Teams as a standalone product for a separate price. To aid customers and independent software vendors in the transition, Microsoft will introduce support resources to assist with data migration from Teams to other products.
Furthermore, Microsoft has committed to developing a new method for hosting Office web applications within competing apps and services, further promoting market interoperability and fair competition.
Despite Microsoft’s efforts, rivals such as Salesforce, the owner of Slack, believe that the company’s offer is still insufficient and does not satisfactorily address the EU’s antitrust concerns.
This move by Microsoft is noteworthy, considering the company’s history of facing significant antitrust fines in the past. It appears that the tech giant is now adopting a more cooperative approach in an attempt to resolve any regulatory issues with the EU.
