Microsoft Unbundles Microsoft 365 and Office 365 Subscription Service by Excluding Teams
Microsoft Takes Action Following European Union Scrutiny and Slack’s Complaints
Microsoft has announced that it will introduce a new version of Microsoft 365 and Office 365 subscription service that excludes Teams, in response to scrutiny from the European Union regulator and complaints from rival Slack. The move follows Microsoft’s decision to sell the Office 365 suite without Microsoft Teams in the European Union and Switzerland last year. Teams was originally introduced as a complimentary offering to the Office 365 suite in 2017. However, many businesses argued that Microsoft’s coupling of the two offerings gave the company an unfair advantage, leading to complaints and allegations of illegality from Slack.
Microsoft Adapts to Feedback from the European Commission
Microsoft’s decision to unbundle Microsoft 365 and Office 365 was also influenced by feedback from the European Commission, which emphasized the need to provide multinational companies with greater flexibility in standardizing their purchasing across geographies. By introducing standalone pricing for Teams at $5.25 per user per month, Microsoft aims to provide existing customers with the option to maintain their current bundled package or choose an alternative that better suits their needs. For new customers, Office packages without Teams will be available at prices ranging from $7.75 to $54.75, depending on the package and features included.
Introducing Office 365 Lineups and Availability
Reuters reported that the new Office 365 lineups will be launched by Microsoft on Monday, although the change had not been implemented at the time of writing. It is yet to be seen how this unbundling will impact the market and whether it will address the concerns raised during the antitrust investigation. TechCrunch has reached out to Microsoft for more information and will update the story accordingly.
