Microsoft Separates Teams from Office in Europe to Address Regulatory Concerns
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Microsoft 365
Aug 31, 2023 2:00 PM

Microsoft Separates Teams from Office in Europe to Address Regulatory Concerns

by HubSite 365 about Microsoft

Software Development Redmond, Washington

Pro UserMicrosoft 365M365 Hot News

Microsoft unbundles Teams from Office 365 and Microsoft 365 in EU to address antitrust concerns raised by regulators.

Microsoft is planning to unbundle Teams from Microsoft 365 and Office 365 in European Union markets. This decision has been made in order to address concerns raised by regulators and avoid further antitrust scrutiny. Recently, the European Commission had initiated a formal antitrust investigation into Microsoft's practice of bundling Teams software with their Office productivity suite. In response to this, Microsoft is making proactive changes in a bid to address these issues meaningfully.

Nanna-Louise Linde, Vice President of Microsoft European government affairs, announced that despite the ongoing European Commission's investigation, Microsoft is taking steps towards alleviating theses concerns. The changes are slated to impact Microsoft 365 and Office 365 suites for business users within the European Economic Area.

  • Microsoft is unbundling Teams from its productivity suites in the EU
  • Teams will be available for new enterprise customers to buy standalone and separately at a list price of €5 per month
  • Beginning October 1, 2023, Microsoft will unbundle Teams from Microsoft 365 and Office 365 suites in the EEA and Switzerland ( the new SKUs will be €2 less per month than the equivalent with Teams SKU)
  • This move is aimed at avoiding further antitrust scrutiny
  • The European Commission had initiated a formal investigation into Microsoft’s bundling practices last month
  • Microsoft is making proactive changes to address these issues
  • The changes will mainly impact business customers using Microsoft and Office 365 suites in the European Economic Area
  • Announcement was made by Nanna-Louise Linde, VP of Microsoft Euroepan government affairs

Existing enterprise customers who already have a suite with Teams can choose to stay with their current productivity suite or to move to a without-teams suite. Microsoft will develop a new method for hosting the Office web applications (e.g. Word, Excel) within competing apps and services, much like Microsoft accomplishes in Teams.

 

Further Insights into Microsoft's Unbundling Teams Strategy

The strategy to unbundle Teams from Office is a key move for Microsoft as it strives to maintain good relations with European regulators, addressing concerns over antitrust rules. Microsoft's proactive measures indicate its commitment towards transparency and cooperation with investigations, ensuring a better competitive landscape. As Teams is integrated within its broader productivity suites, this move also suggests a possible enhancement in product positioning for Microsoft Teams as an individual enterprise tool.

 

 

https://blogs.microsoft.com/eupolicy/2023/08/31/european-competition-teams-office-microsoft-365/

Read the full article Microsoft is unbundling Teams from Office in Europe to address regulator concerns

Learn about Microsoft is unbundling Teams from Office in Europe to address regulator concerns

 

Microsoft is making changes to how it offers its Microsoft 365 and Office 365 productivity suites in European markets. Starting in October, the company will start to unbundle Teams from these suites in order to address antitrust concerns raised by the European Commission. Nanna-Louise Linde, VP of Microsoft European government affairs, has stated that these changes are intended to address the Commission's concerns in a meaningful way. In order to do this, Microsoft will no longer bundle Teams with the Office productivity suite for business customers in the European Economic Area and the UK, and will instead offer it as an optional add-on. This will allow customers to decide whether they wish to purchase it or not. Additionally, Microsoft has pledged to provide more transparent pricing information to its customers, and to make sure that customers are not locked into long-term commitments for products they may not need. By making these changes, Microsoft hopes to address the European Commission's concerns and continue to provide its customers with the best possible experience.

 

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Keywords

Microsoft 365, Office 365, European Econmic Area, European Commission, Microsoft VP Nanna-Louise Linde, Microsoft Teams