Commencing October 2023, Microsoft is set to make a pivotal change for its European users by removing Microsoft Teams from its 365 suite. This strategic maneuver is part of Microsoft’s efforts to address regulatory concerns in response to an ongoing antitrust investigation initiated by the European Commission.
The investigation, spurred by a complaint from productivity rival Slack, centers around Microsoft’s practice of including its video conferencing software, Teams, in the Office suite. Slack asserted that this bundling was in violation of legal norms.
Nanna-Louise Linde, Vice President of Microsoft European Government Affairs, affirmed that these changes signify Microsoft’s proactive response to the investigation while maintaining cooperation with the European Commission. Linde stated, “These changes will look to start to address these concerns in a meaningful way, even while the European Commission’s investigation continues and we cooperate with it.”
The impact of this change will be felt across Microsoft 365 and Office 365 suites for business customers in the European Economic Area and Switzerland. For enterprise customers in the region, Microsoft 365 will be available at a reduced cost of €24 per year. Those desiring Teams will need to subscribe to a separate standalone version, priced at €5 per month or €60 per year.
Existing subscribers will retain their current arrangements, allowing them to continue using Teams as part of their 365 package or opt for the more cost-effective version without Teams, if they prefer.
Notably, Microsoft will continue to bundle Teams with Microsoft 365 business plans for small businesses, even for new subscribers. However, these customers will also have the option to exclude Teams from their package, resulting in a €1 per month saving for Business Basic tiers and a €2 saving for Business Standard and Premium plans.
In addition to these changes, Microsoft has committed to enhancing documentation regarding interoperability between various 365 products like Exchange, Outlook, and Teams, with competing software such as Slack and Zoom. Furthermore, Office web apps will be compatible with hosting on rival platforms.
Slack initially filed its complaint in 2020 during the pandemic, alleging that Microsoft’s bundling of Teams with Office amounted to “force installing it for millions, blocking its removal, and hiding the true cost to enterprise customers.”
While the European Union has not yet confirmed the acceptability of Microsoft’s decision to unbundle Teams, Nanna-Louise Linde expressed confidence in the company’s actions, 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.” Linde also acknowledged the early stage of the European Commission’s formal investigation and the company’s commitment to exploring pragmatic solutions that benefit customers and developers in Europe.
