Microsoft's decision to separate Teams from Office in response to EU anti-trust concerns

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【Summary】Microsoft will no longer bundle its Teams videoconferencing app with its Office software in Europe to avoid anti-trust penalties. The decision comes after the European Union's investigation into concerns that the bundling gives Microsoft an unfair advantage. Slack Technologies had filed a complaint alleging that Microsoft was using its market dominance to eliminate competition.

FutureCar Staff Aug 31, 2023 7:29 AM PT

Microsoft's decision to separate Teams from Office in response to EU anti-trust concerns

Microsoft has announced that it will no longer include its Teams videoconferencing app with its Office software in Europe. This decision is an attempt to avoid potential anti-trust penalties from regulators. In addition, the tech giant has stated that it will take steps to facilitate the compatibility of competing products with its software.

The announcement comes after the European Union's executive Commission initiated a formal investigation in response to concerns raised by Slack Technologies. The investigation was prompted by a complaint filed by Slack in 2020, alleging that Microsoft was leveraging its market dominance to eliminate competition by bundling Teams with its Office suite.

In a blog post, Nanna-Louise Linde, Microsoft's vice president of European government affairs, acknowledged the concerns and outlined the proactive changes being made by the company. However, it remains uncertain whether these concessions will be sufficient to address the Commission's concerns.

The changes implemented by Microsoft aim to address the EU's concerns regarding customer choice and interoperability with rival software. Starting from October 1, customers in the European Economic Area and Switzerland will have the option to purchase Office without Teams at a reduced price. Existing customers can choose to stick with their current plan or switch to the version without Teams. New business customers will also have the opportunity to buy a standalone version of Teams.

Ms Linde emphasized that Microsoft will provide increased support to software developers, including more information on data removal from Teams and its utilization in other software. The company also intends to facilitate the usage of Microsoft's functionality by competitors, instead of them having to develop their own.