Microsoft announced fresh commitments to unbundle its Teams communication app from the Office 365 and Microsoft 365 software suites. This move aims to address antitrust concerns raised by European regulators about Microsoft’s bundling practices, which some believe unfairly tie Teams to popular productivity tools like Word and Outlook.
The European Commission, the executive branch of the European Union, welcomed Microsoft’s proposals as a way to resolve competition worries. The commission had been investigating Microsoft’s bundling of Teams following a complaint by Slack, which argued that this practice abused Microsoft’s market dominance.
Microsoft Unbundles Teams From Office Suites to Address EU Antitrust Concerns and Boost CompetitionMicrosoft Offers Teams-Free Office Versions And Improves Competitor Interoperability To Ease EU Concerns
Under the new commitments, Microsoft will offer Office 365 and Microsoft 365 versions without Teams at a reduced price. Customers will also be allowed to switch to plans without Teams, even under existing contracts. Additionally, Microsoft pledged to increase interoperability for Teams’ competitors, making it easier for other apps to connect with Microsoft products and enabling data portability from Teams to rival platforms.
Slack’s parent company Salesforce, which acquired Slack in 2021 for $27.7 billion, expressed cautious approval but emphasized the need to closely monitor Microsoft’s commitments. Salesforce’s leadership argued that Microsoft’s previous bundling harmed competition and that a strict, enforceable remedy is necessary.
This announcement builds on Microsoft’s earlier efforts in 2023 to sell Microsoft 365 without Teams at a discount and to offer the products separately worldwide. The latest commitments represent Microsoft’s attempt to settle the EU dispute and avoid a possible substantial antitrust fine.
