Microsoft plans to separate Teams software in Europe to address EU concerns

Silhouettes of laptop users are seen next to a screen projection of Microsoft logo in this photo illustration.

Dado Ruvic | Reuters

Microsoft, the renowned U.S. tech giant, has announced its decision to unbundle its highly popular chat and videoconference service, Teams, from its Microsoft 365 and Office 365 product suites. This strategic move is aimed at addressing the concerns raised by the European Union regarding potential antitrust issues.

Starting from October 1st of this year, Microsoft will offer separate packages without the inclusion of Teams, providing customers in the European Economic Area (EEA) and Swiss regions with the option to purchase the software at a discounted price. This reduction totals to a considerable 24 euro ($26) per year.

In response to the bundling of Teams with other Office products, European Union regulators initiated an antitrust investigation in July. Their objective was to address concerns surrounding anti-competitive practices.

Expressing their appreciation for the extensive and constructive discussions held with the European Commission, Nanna-Louise Linde, Vice President of Microsoft European Government Affairs, stated in a blog post on Thursday, “With the benefit of this clarity, we believe it is important that we start to take meaningful steps to address those concerns.”

The European Union spokesperson, when asked for comment on Microsoft’s announcement, simply responded, “We take note of Microsoft’s announcement. We have no further comment to make,” according to CNBC.

— CNBC’s Silvia Amaro contributed to this report

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