Microsoft unbundles Teams from Office 365 and Microsoft 365 during EU investigation.

author: FutureCar Staff    

Microsoft has announced that it will remove the Teams chat app from its Microsoft 365 and Office 365 suites for business customers in the European Economic Area and Switzerland. This move comes as the company aims to cooperate with a European Union probe into potential antitrust violations. The change will take effect on October 1, and customers will have the option to purchase Teams as a standalone option for $5 per month.

The investigation, which was launched in July, alleged that Microsoft had bundled the two software packages as a way to force customers to use Teams over competing communication programs. Under the previous terms, customers were not allowed to choose a business suite without Teams at a lower price, raising concerns about competition in Europe.

The probe originated from a complaint by rival company Slack Technologies, which accused Microsoft of illegally tying Teams to its dominant business productivity suites. This investigation has put pressure on Microsoft to address compatibility concerns and improve the efficiency of its software programs as remote communication tools like Teams have become essential during the COVID-19 pandemic.

In response to the investigation, Microsoft stated its commitment to providing modern work solutions and collaboration capabilities. The company also acknowledged its responsibility to support a healthy competitive environment. Microsoft plans to unbundle Teams from its suites and offer them at a lower price to enterprise customers in the region. New enterprise customers will have the option to purchase Teams separately, while existing customers can choose to stay with their current software or switch to a suite without Teams. Small business and frontline workers will also have the choice to opt for a "without-Teams" option at a lower price.

Microsoft also intends to improve the interoperability of its suites and provide better technical support to its customers. Additionally, the company will allow application developers to make improvements to the software and enable third-party hosting of its Office web applications for the first time, giving competitors access to Microsoft's functions.

The length of the antitrust probe will depend on various factors, including the complexity of the case and Microsoft's cooperation with the investigation. In addition to the EU probe, Microsoft is also facing an antitrust complaint from Britain's Competition and Markets Authority regarding its acquisition of Activision Blizzard.

FutureCar Staff