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EU hands Microsoft a $2.4bn fine, Teams and Office set to separate amid continuing antitrust litigation
Microsoft, already embroiled in several antitrust lawsuits and burdened with a $2.4 billion penalty, could be staring at more sanctions. To prevent this, the tech giant plans to market its Teams applications independently from its Office suite.
Microsoft has declared its plan to globally offer its chat and video application, Teams, as a stand-alone product, distinct from its Office suite. This decision comes half a year after it separated the two products in Europe in response to potential antitrust issues raised by the European Union.
The European Commission has been probing into Microsoft's packaging of Office and Teams since 2020. This investigation was initiated due to a grievance filed by Slack, a rival workspace communication application owned by Salesforce.
Office 365 first introduced Teams for free in 2017, which saw a surge in usage especially during the pandemic due to its video conferencing features, after it took over Skype for Business.
Opponents contended that packaging the products gave Microsoft an undue edge. As a result, Microsoft began selling Office and Teams individually in the EU and Switzerland from August 31 the previous year.
Responding to customer suggestions and to offer international firms greater buying adaptability, Microsoft has chosen to expand the unbundling worldwide, as stated by a representative from the company.
Microsoft is rolling out modifications which include new global commercial Microsoft 365 and Office 365 packages that exclude Teams. In addition, a separate Teams service for Enterprise clients will be accessible in areas beyond the European Economic Area (EEA) and Switzerland.
Starting from April 1, clients have the option to either maintain their existing license agreements or transition to the new services.
The cost for Office excluding Teams for new business clients will range from $7.75 to $54.75. However, Teams on its own will be priced at $5.25. The prices can fluctuate depending on the country and the type of currency.
Despite Microsoft's attempts to alleviate antitrust worries, they might still face possible allegations from the EU, as competitors critique the costs and compatibility of their messaging services with Office Web Applications.
Over the last ten years, Microsoft has been hit with €2.2 billion in antitrust penalties by the EU for packaging products together. Furthermore, if they are deemed guilty of antitrust breaches, they could potentially be fined up to 10% of their worldwide yearly revenue.
(Incorporating information from various sources)
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