Microsoft’s decision to globally sell its chat and video app Teams separately from its Office product marks a significant shift in its business strategy, prompted by efforts to navigate antitrust regulations, particularly in the European Economic Area (EEA) and Switzerland.
This move comes after Microsoft previously separated Teams from Office in the EU to comply with antitrust rules. Now, the tech giant is extending this separation globally, launching new commercial Microsoft 365 and Office 365 suites that exclude Teams in regions outside the EEA and Switzerland. Instead, Microsoft will offer a standalone Teams product for Enterprise customers in these locations.
For new commercial customers, Office without Teams will be priced between $7.75 and $54.75, depending on the product, while standalone Teams will cost $5.25. These prices may vary by country and currency. Notably, Microsoft has not disclosed prices for existing packaged products.
The decision to unbundle Teams from Office was initially announced in August 2023, with implementation starting on October 1, 2023. This move was aimed at addressing concerns raised by the European Commission (EC) regarding potential breaches of EU competition rules. The EC had launched a formal investigation following a complaint by Slack Technologies, alleging that Microsoft illegally tied Teams to its dominant productivity suites.
A Microsoft spokesperson stated that the decision to globally unbundle Teams from Microsoft 365 and Office 365 addresses feedback from the EC, providing multinational companies with greater flexibility in their purchasing decisions across different regions.
However, despite Microsoft’s efforts to address regulatory concerns, it may still face antitrust charges from the EU in the coming months. Competitors have criticized the level of fees associated with Microsoft’s offering and raised concerns about the compatibility of their messaging services with Office Web Applications.
Overall, Microsoft’s decision reflects its commitment to compliance with antitrust regulations while maintaining its position in the competitive landscape of workplace collaboration tools. The global separation of Teams from Office underscores the company’s willingness to adapt its business practices to regulatory requirements and market dynamics.