Key Points:
- Microsoft will sell Teams separately from Office globally. This decision follows an investigation by the EU into the bundling of Office and Teams.
- Teams, introduced to Office 365 in 2017, gained popularity during the pandemic for its video conferencing capabilities, replacing Skype for Business.
- Microsoft aims to provide customers with more flexibility by offering Office and Teams separately. Now, it is extending this unbundling globally.
- New commercial suites without Teams will be available outside the EU and Switzerland. Customers can switch to the latest offerings starting April 1.
Microsoft Corporation (MSFT.O) announced on Monday that it will begin selling its chat and video app, Teams, separately from its Office product globally. This decision comes six months after the company unbundled the two products in Europe to avoid potential EU antitrust penalties.
The European Commission has been investigating Microsoft’s tie-up of Office and Teams since 2020, following a complaint by Salesforce-owned Slack, a competing workspace messaging app. Teams, introduced to Office 365 in 2017, gained popularity during the pandemic for its video conferencing capabilities, replacing Skype for Business. However, competitors argued that bundling the products gave Microsoft an unfair advantage.
In response to feedback from the European Commission, Microsoft began selling Office and Teams separately in the European Economic Area and Switzerland on August 31 last year. Now, the company is extending this unbundling globally to provide customers more flexibility. Microsoft will introduce new commercial Microsoft 365 and Office 365 suites that exclude Teams outside the European Economic Area and Switzerland. A standalone Teams offering for Enterprise customers will also be available in those regions.
Starting April 1, customers can choose to continue with their current licensing deal or switch to the new offerings, which include options without Teams. The pricing for Office without Teams ranges from $7.75 to $54.75 for different products, while Teams Standalone will cost $5.25. Prices may vary by country and currency.
Microsoft may face EU antitrust charges in the coming months despite its unbundling efforts. Rivals criticize the fees and compatibility of their messaging services with Office Web Applications, and Microsoft risks substantial fines if found guilty.
