Microsoft Corporation has announced that it will split Teams, its workplace messaging and video conferencing tool, from the Office suite globally.
Reuters tells us that this decision is in response to continuous antitrust scrutiny by European Union (EU) regulators. Last year, the tech giant unbundled Teams from its Office product in Europe, seeking to prevent any penalties from the EU.
Microsoft Hit with Antitrust Probe
(Photo : GERARD JULIEN/AFP via Getty Images)
The logo of French headquarters of American multinational technology company Microsoft, is pictured outside on March 6, 2018 in Issy-Les-Moulineaux, a Paris' suburb.
Teams, which was integrated into Office 365 in 2017, has gained significant popularity, especially during the COVID-19 pandemic, due to its video conferencing capabilities. However, competitors have criticized Microsoft for bundling the two products together, arguing that it provides the company with an unfair advantage in the market.
In August 2023, the European Commission launched an antitrust investigation into Microsoft following a complaint from Salesforce-owned competing workspace messaging app Slack. The investigation focuses on whether Microsoft's bundling of Office and Teams violates EU competition rules.
To address concerns raised by the European Commission and provide clarity to customers, Microsoft has decided to extend the unbundling of Teams from Office globally. This means that businesses worldwide will now have the option to purchase Office products without Teams, offering them more flexibility in their purchasing decisions.
(Photo : KIRILL KUDRYAVTSEV/AFP via Getty Images)
An illustration picture taken on March 2, 2023 in Moscow shows a smart phone screen bearing the Microsoft Teams application logo.
What This Means for Customers
Starting April 1, customers can choose to renew, update, or switch to the new offers, which include standalone Teams subscriptions for enterprise customers. Prices for Office products without Teams range from $7.75 to $54.75 for new commercial customers, while standalone Teams subscriptions will cost $5.25. It's important to note that these prices may vary by country and currency.
The EU's antitrust investigation into Microsoft's bundling practices follows concerns about the company's market dominance and potential anti-competitive behavior. If found guilty of antitrust breaches, Microsoft could face fines of up to 10% of its global annual turnover.
Despite Microsoft's efforts to address the EU's concerns, it remains unclear whether these measures will be sufficient to avoid potential fines. The European Commission has expressed particular concerns about the interoperability between Microsoft's productivity suites and rival messaging apps.
In Other News
TikTok Shop will raise its commission fees for retailers commencing April 1st, 2024. The cost will increase from 2% to 6% of the order value, and then to 8% on July 1.
According to reports, this move follows TikTok Shop's successful US launch phase, during which its low fees and subsidies attracted sellers. Analysts believe that this transition marks a watershed moment for the online shopping platform, testing users' loyalty to TikTok Shop's e-commerce strategy and perhaps increasing customer costs.
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