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.