Microsoft will have to sell Teams separately from the rest of 365, or face a huge fine

• Microsoft removes Teams for €2 discount, option to add it on for €5
• More must be done to improve software interoperability
• Rivals and customers seem happy with the solution

Microsoft is set to avoid a large antitrust fine after the European Union accepted its offer to unbundle video conferencing platform Teams from Office - which means Teams will now have to be sold separately from the Office 365 and Microsoft 365 licenses.

The conditions stipulate Microsoft must sell Teams-less packages for less to reflect the removal of its online collaboration software.

Microsoft must also do more to improve the interoperability of its software with rivals in a bid to prevent vendor lock-in.

Microsoft is set to unbundle Teams following European battle

The impending agreement comes after a years-long battle in Europe – the case stems from a 2020 complaint from Slack. Despite Europe’s efforts to reach agreements rather than issue fines, they haven’t come without their fair share of scrutiny.

The White House has already criticized Europe’s alleged control over American tech firms.

Bloomberg notes that rivals and customers have raised no major concerns following the proposal to unbundle Teams from the rest of the Microsoft package, suggesting this could be the final step required to write off the complaint.

Earlier on during the complaint’s timeline, we already saw Microsoft and its rivals open up some of the red tape to improve interoperability between their platforms.

One year ago, Microsoft President Brad Smith noted: “On Teams, we have done a lot of work, our work isn't yet done. Microsoft is committed to find a resolution to regulators' concerns.”

Smith also admitted Microsoft expected to have to take “additional steps” to appease regulators.

Microsoft shared details of its Teams-less pricing in 2023, confirming the packages would cost €2/month or €24/year less in the EEA and Switzerland. However, Teams would be available as a standalone package for €5/month or €60/year, resulting in a higher overall cost and rendering Europe’s ruling largely ineffective.

TechRadar Pro reached out to the European Commission and Microsoft for further clarification about the steps forward and details on pricing, but we did not receive an immediate response.

You might also like

• "We're done" - major government organization slams Microsoft Teams as it drops Windows for good
• Cut the costs with the best free office software
• We’ve listed the best productivity tools