Microsoft is splitting up its workplace messaging and video calls app Teams from its Office platform globally in an attempt to avoid antitrust penalties from the European Union. The tech giant previously unbundled Teams from its Microsoft 365 subscription in the EU last year and will now offer the messaging service as a standalone subscription for all customers worldwide. This decision comes after feedback from the European Commission to help global companies “standardize their purchasing across geographies.”
Last year, the European Commission opened an antitrust investigation into Microsoft, specifically looking into whether the company breached EU competition rules by tying Teams to its Office suites. Concerns were raised about Microsoft potentially abusing its market dominance to limit competition for communication and collaboration products. This investigation followed a complaint filed by Microsoft’s rival messaging platform Slack. Microsoft responded by unbundling Teams for EU customers in August, stating it was taking steps to address the commission’s concerns.
It remains unclear whether Microsoft’s latest actions will be enough to avoid an antitrust fine from the EU. While unbundling Teams may address concerns about giving the platform a distribution advantage over rivals, the commission also raised questions about interoperability between Microsoft’s productivity suites and rival messaging apps. If the EU investigators are not satisfied with the remedies put in place by Microsoft, the company could face fines up to 10% of its global annual turnover.
Microsoft’s decision to split Teams from its Office platform globally reflects the company’s ongoing efforts to comply with antitrust regulations and address concerns raised by the European Commission. By offering the messaging service as a standalone subscription, businesses now have the option to choose slightly cheaper Microsoft 365 plans without Teams. This move aims to provide clarity for customers and help global companies standardize their purchasing practices across different regions.
In the past decade, Microsoft has faced antitrust fines totaling $2.37 billion (€2.2 billion) in the European Union. This history of penalties underscores the importance for the tech giant to navigate antitrust regulations carefully, especially as it continues to expand its business offerings globally. Microsoft’s ongoing dialogue with the European Commission and its efforts to address concerns through unbundling Teams demonstrate the company’s commitment to compliance with antitrust laws and regulations. Further developments in this ongoing saga will be closely watched as the EU continues to scrutinize Microsoft’s business practices.
