Microsoft has announced the separation of its Teams business messaging and video app from its Office software globally. This move comes after the company faced a possible fine from competition watchdogs in Europe last year. The European Commission had been investigating the addition of Teams to Office in 2017 following a complaint from rival Slack in 2020.
A Microsoft spokesperson stated that the split is aimed at providing clarity for customers and addressing feedback from the European Commission. The separation of Teams from Office will allow multinational companies more flexibility when standardizing purchasing across different regions. Teams Standalone will cost $5.25 (£4.20) for new customers, according to a blogpost by Microsoft.
However, it remains uncertain whether this decision by Microsoft will be sufficient to avoid potential EU antitrust charges. The company has a history of incurring antitrust fines in Europe for bundling or tying products together. If found guilty, Microsoft could face a fine of up to 10% of its global annual turnover. In the past, the US Justice Department also sued Microsoft for using its dominance of the Windows platform to stifle competition from rival web browsers.
After Teams was separated from the Microsoft 365 and Office Suites in Europe last October, there was little change in the user base of the platform, according to market intelligence firm Sensor Tower. This indicates that the split may not have a substantial impact on user adoption.
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