In a strategic move to address European Union (EU) antitrust concerns, Microsoft has unbundled its Teams collaboration platform from its Office 365 and Microsoft 365 suites in the European Economic Area (EEA) and Switzerland. This decision aims to provide customers with more flexibility and to alleviate regulatory scrutiny over Microsoft's product bundling practices.

Background

The EU's investigation into Microsoft's bundling practices began in 2020 following a complaint from Slack Technologies, now part of Salesforce. Slack alleged that Microsoft's integration of Teams with its Office suite gave it an unfair competitive advantage, potentially stifling competition in the collaboration software market. In response to these concerns, Microsoft announced in August 2023 that it would unbundle Teams from its Office 365 and Microsoft 365 suites in the EEA and Switzerland, offering Office without Teams at a reduced price. (blogs.microsoft.com)

Microsoft's Unbundling Strategy

Starting October 1, 2023, Microsoft began offering its Office 365 and Microsoft 365 suites without Teams at a lower price—€2 less per month or €24 per year. This adjustment was primarily targeted at enterprise customers in the EEA and Switzerland. Teams remained available as a standalone product for €5 per month or €60 per year. Additionally, Microsoft committed to enhancing interoperability with competing communication and collaboration solutions, such as allowing integration with Zoom within Outlook. (blogs.microsoft.com)

EU's Response and Ongoing Investigation

Despite Microsoft's efforts, the European Commission expressed concerns that the initial unbundling did not fully address the competition issues. In May 2025, the Commission moved closer to settling its antitrust investigation into Microsoft, following new commitments from the company to address concerns about its Teams and Office 365 bundling practices. Microsoft pledged to maintain the separation of Teams from Office for seven years and improve product interoperability. The Commission initiated a market test to evaluate the adequacy of these concessions based on feedback from competitors and customers. (ft.com)

Implications and Impact

Microsoft's decision to unbundle Teams from Office in Europe is a significant development in the ongoing efforts to ensure fair competition in the software industry. By offering Office without Teams at a reduced price, Microsoft aims to provide customers with more choice and to address regulatory concerns. The company's commitment to enhancing interoperability with competing solutions is also a positive step toward fostering a more competitive market. However, the effectiveness of these measures will depend on the European Commission's assessment and the feedback from market participants.

Conclusion

Microsoft's unbundling of Teams from Office in Europe represents a proactive approach to addressing antitrust concerns and promoting fair competition. The company's efforts to provide customers with more flexibility and to improve interoperability with competing solutions are commendable. The outcome of the European Commission's investigation will be crucial in determining the long-term impact of these changes on Microsoft's business practices and the broader software industry.

Meta Description

Microsoft unbundles Teams from Office in Europe to address EU antitrust concerns, offering more flexibility and improved interoperability.

Tags

  • Microsoft
  • Teams
  • Office 365
  • Microsoft 365
  • EU Antitrust
  • Product Unbundling
  • Competition Law
  • Software Industry
  • Interoperability
  • European Commission

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