Microsoft to allow European business customers to purchase Teams separately from Office software
Microsoft has announced that it will allow business customers in Europe to buy its video and chat app Teams separately from its Office software. This decision comes a month after the European Union (EU) initiated an antitrust investigation into the company’s bundling of these products.
The change will come into effect on October 1 and will impact business customers in the EU, as well as four other European countries that utilize Microsoft 365 and Office 365 suites. Additionally, Microsoft will make it easier for other companies, such as Zoom and Slack (owned by Salesforce), to integrate their products with Microsoft 365, which is the new name for Office 365.
Nanna-Louise Linde, Microsoft’s vice-president for European government affairs, stated in a blog post that these changes aim to balance the interests of competitors with those of European business customers, providing them with access to the best possible solutions at competitive prices. Linde also mentioned that Microsoft will continue to engage with the investigation and remain open to exploring pragmatic solutions that benefit both customers and developers in Europe.
As part of this new approach, Microsoft will reduce the monthly charge for Microsoft 365 and Office 365 by €2 ($2.2) for big business customers who opt for the suite without the Teams app. However, these “enterprise customers” will still have the option to purchase Teams separately for €5 ($5.4) per month, which is well-known for its video-conferencing feature. Existing enterprise customers can choose to either stick with their current productivity suite or transition to a suite without Teams.
The blog post did not mention any changes for personal customers, suggesting that the modifications primarily target business users. The EU initiated its antitrust investigation into Microsoft following a complaint by Slack in 2020, alleging that the company illegally tied Teams to its dominant workplace software.
Overall, Microsoft’s decision to allow the separate purchase of Teams aims to address concerns raised by competitors and provide more flexibility for European business customers. The company’s willingness to cooperate with the investigation demonstrates its commitment to finding solutions that benefit both customers and developers in Europe.
What benefits and flexibility will European business customers gain from the option to buy Teams independently from the Office suite
Microsoft has announced that it will allow business customers in Europe to purchase its video and chat app, Teams, separately from its Office software. This decision comes in response to an antitrust investigation initiated by the European Union (EU) into the company’s bundling of these products.
Starting from October 1, European business customers, as well as those in four other European countries, will have the option to buy Teams independently. In addition, Microsoft aims to facilitate integration between its products and those of other companies like Zoom and Slack (owned by Salesforce) within Microsoft 365, the new name for Office 365.
Nanna-Louise Linde, Microsoft’s vice-president for European government affairs, explained in a blog post that these changes aim to find a balance between the interests of competitors and European business customers. The goal is to provide customers with access to the best solutions at competitive prices. Microsoft also intends to collaborate with the investigation and explore practical solutions that benefit both customers and developers in Europe.
Under the new approach, Microsoft will offer a reduced monthly charge of €2 ($2.2) for big business customers who choose the Microsoft 365 and Office 365 suite without the Teams app. However, these “enterprise customers” can still opt to purchase Teams separately for €5 ($5.4) per month, which is well-known for its video-conferencing feature. Existing enterprise customers can decide whether to stick with their current productivity suite or transition to a suite without Teams.
While the blog post focuses on changes for business customers, it does not mention any modifications for personal customers. This suggests that the updates primarily target business users. The EU initiated the antitrust investigation into Microsoft following a complaint by Slack in 2020, alleging that Microsoft illegally tied Teams to its dominating workplace software.
Overall, Microsoft’s decision to allow separate purchases of Teams addresses concerns raised by competitors and provides more flexibility for European business customers. The company’s willingness to cooperate with the investigation demonstrates its commitment to finding solutions that benefit both customers and developers in Europe.
