- Microsoft will unbundle Teams from Office and Microsoft 365 in EU markets starting October, addressing European Commission antitrust concerns.
- EU enterprise customers can now purchase Microsoft 365 without Teams or opt for a separate Teams subscription, at a reduced price.
- Existing users have the option to continue with current plans or switch to the new “without Teams” offerings.
Microsoft will begin unbundling its Teams software from the Microsoft 365 and Office 365 productivity suites in European Union (EU) markets from October onwards. This decision is a response to the antitrust investigation initiated by the European Commission in response to concerns about the bundling of Teams with the Office productivity suite.
Nanna-Louise Linde, Vice President of Microsoft European Government Affairs, stated, “Today we are announcing proactive changes that we hope will start to address these concerns in a meaningful way, even while the European Commission’s investigation continues and we cooperate with it.” These changes will impact business customers in the European Economic Area and Switzerland using Microsoft 365 and Office 365 suites.
The unbundling will allow enterprise customers in EU markets to purchase Microsoft 365 subscriptions at a reduced monthly cost without Teams. Alternatively, they can opt for a standalone Teams subscription, priced at €5 per month or €60 per year. Linde clarified, “We will instead simply sell these offerings without Teams at a lower price (€2 less per month or €24 per year).”
These changes will apply to new subscribers only. Existing enterprise users will have the option to renew their current suites, modify the number of seats, or transition to the new “without Teams” plans. The primary focus of this unbundling initiative is on enterprises, as Microsoft will continue bundling Teams in its Microsoft 365 Business plans designed for small businesses. Additionally, Microsoft will offer a “no Teams” option for these small business plans, priced at €1 less per month for the Business Basic plan and €2 less per month for Business Standard or Premium plans.
In addition to unbundling Teams, Microsoft is planning to enhance its documentation on interoperability with Microsoft 365 and Office 365 for competitors like Zoom and Slack. This initiative aims to facilitate the integration of rival services into Microsoft’s Exchange, Outlook, and Teams platforms. Furthermore, Microsoft intends to permit competitors to host Office web applications within their respective apps, mirroring how Microsoft currently operates within Teams.
This move follows a complaint filed by Slack with the European Commission in July 2020, alleging that Microsoft engaged in anti-competitive practices by tying Microsoft Teams to Office and imposing it on users. Microsoft’s Teams product witnessed significant growth, particularly during the global pandemic. Slack claimed that Microsoft had “illegally tied” Teams to Office, making it difficult for enterprise customers to remove Teams or understand the actual costs associated with its use.
Now, Microsoft awaits the verdict of EU regulators regarding whether the unbundling of Teams from Office suites in EU markets satisfies their concerns. Linde expressed Microsoft’s stance, stating, “We believe these changes balance the interests of our competitors with those of European business customers, providing them with access to the best possible solutions at competitive prices.” She also emphasized Microsoft’s commitment to engaging with the European Commission, listening to market concerns, and exploring practical solutions that benefit customers and developers in Europe.
