Microsoft Splits Teams From Office Package Over Antitrust Concerns
Due to antitrust concerns and pressure from regulators, Microsoft is set to sell Teams and other Microsoft 365 applications as separate products. Learn more about the move and its ramifications for the tech giant.
- Microsoft is unbundling the Teams app from the Office software suite owing to increased scrutiny from regulators worldwide.
- The development follows Slack’s 2020 complaint to the European Commission about Microsoft’s anti-competitive behavior.
Microsoft has announced plans to split its Teams video and messaging app from its Office software bundle for users worldwide. The company has already split the products in the European Union owing to pressure from anti-competition regulators in the region. The decision was based on a complaint by Slack to the European Commission in 2020.
A Microsoft spokesperson has stated that the development will provide better clarity for its customers in addition to addressing the feedback of European regulators by increasing flexibility for companies seeking to standardize operations across multiple countries. With the splitting of the apps, Teams will cost only $5.25.
See More: Apple Sued by Department of Justice in Antitrust Case Over iPhone Monopoly
The move is an attempt by Microsoft to allay anti-competition concerns among regulators. The company has been fined over 2 billion euros in the past decade in the EU alone over antitrust violations for bundling multiple products. The company risks up to 10% of its global turnover over antitrust breaches.
The company has also faced action from the US Justice Department over antitrust violations regarding its Windows platform. In October 2023, Microsoft split Microsoft 365 and Office software for EU users. The latest changes will affect Microsoft for Frontline, Business, and Enterprise version users.
The unbundling is expected to benefit competitor platforms such as Slack and Zoom. However, it is not yet clear whether the decision to split its products is enough to stave off the fine of violating EU antitrust regulations.
What do you think about Microsoft’s product marketing strategies? Let us know your thoughts on LinkedIn, X, or Facebook. We’d love to hear from you!
Image source: Shutterstock
LATEST NEWS STORIES
