Microsoft Separated Teams And Office Globally After European Objections

Microsoft sold its chat and video app Teams, separating Teams and Office globally, said the U.S. tech giant on Monday (25 March. 2024), after six months of unbundling the two European products to avoid a possible EU antitrust fine.

In 2020, a complaint by Salesforce-owned (CRM.N) opened a new tab rival workspace messaging software Slack. The European Commission has been looking into Microsoft’s integration of Office and Teams.

When Teams was Added to Office 365?

Teams app was added to Office 365 in 2017 for free as a replacement for Skype and became popular during the 2019 pandemic due to its video conferencing.

Competitors claimed that Microsoft had an unfair advantage because the products were bundled. The company started selling the two products separately in Switzerland and the EU on August 31 last year.

Microsoft’s Official Statement about Separating Teams and Office:

“To ensure clarity for our customers, we are extending the steps we took last year to unbundle Teams from M365 and O365 in the European Economic Area and Switzerland to customers globally,” a Microsoft spokesperson said.

“Doing so also addresses feedback from the European Commission by providing multinational companies more flexibility when they want to standardise their purchasing across geographies.”

Microsoft announced the launch of a new array of commercial Office 365 and Microsoft 365 suites that do not contain Teams for customers in locations outside of Switzerland and the European Economic Area (EEA), as well as a new Teams standalone offering for Enterprise customers in those territories.

Office 365 Package Prices Updated:

From April 1, 2024, customers can continue their current licensing deal, renew, update, or switch to the new offers.

Office without Teams costs $7.75 to $54.75 for new commercial users, depending on the package, whereas Teams Standalone is $5.25. Based on the country and currency, the figures could change. The prices of the company’s current packaged products were not disclosed.

The level of costs and Microsoft’s messaging services’ compatibility with Office Web Applications in other companies’ offerings are being criticized by the competitors; it is possible that Microsoft’s unbundling will not be sufficient to fend off EU antitrust accusations, which are expected to be brought against the business in the coming months, according to sources.

Enhancing the Customer Satisfaction:

Microsoft’s move to separate Teams and Office globally demonstrates the company’s commitment to addressing regulatory concerns while enhancing customer flexibility in purchasing decisions. This tactical change highlights Microsoft’s commitment to compliance and customer happiness while aligning with the changing market dynamics.

The decision to offer new commercial Office 365 and Microsoft 365 suites without Teams outside the European Economic Area and Switzerland reflects Microsoft’s proactive approach to meeting diverse customer needs across different regions. Microsoft hopes to meet the unique needs of business clients across regions by offering stand-alone options for Teams.

Conclusion:

In conclusion, Microsoft’s decision to separate Teams and Office globally signifies a strategic shift to address European concerns and enhance customer satisfaction. While challenges may lie ahead, Microsoft’s proactive approach reflects its commitment to compliance, transparency, and customer-centricity in an ever-evolving digital landscape.