Teams

Report: Microsoft to face antitrust case over Teams

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Unbundling Teams from Office has apparently failed to impress EU regulators.

Javier Espinoza, Financial Times – May 13, 2024 2: 03 pm UTC

Report: Microsoft to face antitrust case over Teams — Microsoft

Brussels is set to issue new antitrust charges against Microsoft over concerns that the software giant is undermining rivals to its videoconferencing app Teams.

According to three people with knowledge of the move, the European Commission is pressing ahead with a formal charge sheet against the world’s most valuable listed tech company over concerns it is restricting competition in the sector.

Microsoft last month offered concessions as it sought to avoid regulatory action, including extending a plan to unbundle Teams from other software such as Office, not just in Europe but across the world.

However, people familiar with their thinking said EU officials were still concerned that the company did not go far enough to facilitate fairness in the market.

Rivals are concerned that Microsoft will make Teams run more compatibly than rival apps with its own software. Another concern is the lack of data portability, which makes it difficult for existing Teams users to switch to alternatives.

The commission’s move would represent an escalation of a case that dates back to 2020 after Slack, now owned by Salesforce, submitted a formal complaint over Microsoft’s Teams.

It also would end a decade-long truce between EU regulators and the US tech company, after a series of competition probes that ended in 2013. The EU then issued a 561 million euro fine against Microsoft for failure to comply with a decision over the bundling of the Internet Explorer browser with its Windows operating system.

Charges could come in the next few weeks, said the people familiar with the commission’s thinking. Rivals of Microsoft and the commission are meeting this week to discuss the case, in an indication that the charges are being prepared, the people said.

However, they warned that Microsoft could still offer last-minute concessions that would derail the EU’s case, or the commission might decide to delay or scrap the charges against the company.

Microsoft risks fines of up to 10 percent of its global annual turnover if found to have breached the EU competition law.

The company declined to comment but referred to an earlier statement that said it would “continue to engage with the commission, listen to concerns in the marketplace, and remain open to exploring pragmatic solutions that benefit both customers and developers in Europe.”

The commission declined to comment.

The move against Microsoft comes at a time of heightened scrutiny of its activities. The EU is also investigating whether the tech group’s $13 billion alliance with ChatGPT maker OpenAI breaks competition law.

Microsoft is also part of a handful of tech companies, including Google and Meta, caught as “gatekeepers” under the new Digital Markets Act, meaning it has special responsibilities when trading in Europe.

The tech company has also faced complaints from European cloud computing providers that are concerned that Microsoft is abusing its dominant position in the sector to force users to buy its products and squashing competition from smaller start-ups in Europe.

Microsoft splits up the Teams and Office apps worldwide, following EU split

Biz & IT, microsoft, microsoft 365, Microsoft office, Microsoft Teams, office, Teams / Blake Jones / April 1, 2024

different teams —

Changes may save a bit of money for people who want Office apps without Teams.

Andrew Cunningham – Updated Apr 1, 2024 8: 12 pm UTC

Months after unbundling the apps in the European Union, Microsoft is taking the Office and Teams breakup worldwide. Reuters reports that Microsoft will begin selling Teams and the other Microsoft 365 apps to new commercial customers as separate products with separate price tags beginning today.

“To ensure clarity for our customers, we are extending the steps we took last year to unbundle Teams from M365 and O365 in the European Economic Area and Switzerland to customers globally,” a Microsoft spokesperson told Ars. “Doing so also addresses feedback from the European Commission by providing multinational companies more flexibility when they want to standardize their purchasing across geographies.”

The unbundling is a win for other team communication apps like Slack and videoconferencing apps like Zoom, both of which predate Teams but haven’t had the benefits of the Office apps’ huge established user base.

The separation follows an EU regulatory investigation that started in July of 2023, almost exactly three years after Slack initially filed a complaint alleging that Microsoft was “abusing its market dominance to extinguish competition in breach of European Union competition law.”

In August of 2023, Microsoft announced that it would be unbundling the apps in the EU and Switzerland in October. Bloomberg reported in September that Zoom had met with EU and US Federal Trade Commission regulators about Microsoft, further ratcheting up regulatory pressure on Microsoft.

In October, Microsoft European Government Affairs VP Nanna-Louise Linde described the unbundling and other moves as “proactive changes that we hope will start to address these concerns in a meaningful way,” though the EU investigation is ongoing, and the company may yet be fined. Linde also wrote that Microsoft would allow third-party apps like Zoom and Slack to integrate more deeply with the Office apps and that it would “enable third-party solutions to host Office web applications.”

Microsoft has put up a blog post detailing its new pricing structure here—for now, the changes only affect the Microsoft 365 plans for the Business, Enterprise, and Frontline versions of Microsoft 365. Consumer, Academic, US Government, and Nonprofit editions of Microsoft 365 aren’t changing today and will still bundle Teams as they did before.

Current Office/Microsoft 365 Enterprise customers who want to keep using the Office apps and Teams together can continue to subscribe to both at their current prices. New subscribers to the Enterprise versions of Microsoft 365/Office 365 can pay $5.25 per user per month for Teams, whether they’re buying Teams as standalone software or adding it on top of a Teams-free Office/Microsoft 365 subscription.

For the Business and Frontline Microsoft 365 versions, you can either buy the version with Teams included for the same price as before, or choose a new Teams-less option that will save you a couple of dollars per user per month. For example, the Teams-less version of Microsoft 365 Business Standard costs $10.25 per user per month, compared to $12.50 for the version that includes Teams.

Updated April 1, 2024, at 4: 12 pm to add more details about pricing and a link to Microsoft’s official blog post about the announcement; also added a statement from a Microsoft spokesperson.

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