Microsoft to Unbundle Teams App Amid EU Antitrust Concerns

In an effort to stave off additional antitrust investigations from the EU, Microsoft has taken decisive action by proposing a separation of its Teams app from a larger suite of business software (via Bloomberg).

The move aims to counter the EU’s concerns about potential competition violations related to the bundling of Microsoft’s products.

Nanna-Louise Linde, the Vice-President for European Government Affairs at Microsoft, announced this significant development through a blog post on Thursday.

The company has set October 1 as the date for the unbundling of Teams from Microsoft 365 and Office 365 across Europe.

Linde’s announcement also revealed Microsoft’s plan to enhance the synergy between the two versions of 365 and establish a method for integrating Microsoft Office web applications into competing applications.

This initiative follows the EU’s decision to initiate an investigation in July over potential antitrust violations related to the bundling of Teams with Microsoft’s Office 365 and Microsoft 365 packages.

In lieu of packaging Teams with its business software bundles, Microsoft is considering an alternative approach: selling the Teams app separately to enterprise customers.

To make this proposition enticing, Microsoft is contemplating an annual discount of €24 ($26.20).

This bold maneuver is intended to not only appease the EU but also to demonstrate Microsoft’s willingness to collaborate and address concerns regarding fair competition and market dynamics.