Microsoft will no longer include its own messaging app, Teams, in its Office productivity bundle. The Redmond tech giant is reportedly making this move to address the concerns raised to regulators regarding alleged antitrust practices. Given Microsoft's cases with regulatory boards in different parts of the world, choosing to un-bundle Teams seems to be its easiest way out of a court battle.
Microsoft Unbundling Teams from Office Likely a Response to Slack's Antitrust Complaint
As reported by Financial Times, Microsoft's decision to unbundle Teams could be an attempt to prevent further conflict with EU regulators. Salesforce, the tech company that currently owns Team's close rival Slack, filed a complaint before the regulatory board in 2020 about Microsoft selling Teams in a package with the Office suite.
According to Salesforce, this practice is a clear violation of the EU's antitrust laws. "We're asking the EU to be a neutral referee, examine the facts and enforce the law," a Salesforce general counsel stated as per Engadget.
As Microsoft is facing a possible full-blown EU antitrust investigation, making it the tech company's biggest regulatory concern in almost a decade, unbundling Teams appears to be the best choice for the tech company.
Based on the Financial Times' report, Microsoft will allow individuals and organizations to purchase Office without Teams. However, it remains to be seen how this new system will be applied. When asked about the company's status with EU regulators, Microsoft said that the talks are currently ongoing but no deal has been made as of now.
"We are mindful of our responsibilities in the EU as a major technology company. We continue to engage cooperatively with the commission in its investigation and are open to pragmatic solutions that address its concerns and serve customers well," Microsoft said.
Nonetheless, Microsoft is hopeful that removing Teams from the Office suite bundle would stop the pressure from regulators. If the company's move achieved this outcome, other tech companies facing the same antitrust issues could follow Microsoft's lead and provide unbundled packages for their products and services.
Related Article: New Microsoft Teams Will Perform Better than Its Predecessor
Microsoft's Possible Antitrust Case with the EU Not Its First Regulation Conflict
Slack's antitrust complaint before the EU is not the first time that Microsoft faced a regulatory issue. In 2009, the Big Tech entered a settlement deal with the European Commission to allow its customers to avail of an alternative web browser. However, Microsoft was unable to comply with that deal consistently and the company was given a €561 million fine in 2013.
In 2001, Microsoft was forced to agree with sharing APIs with third-party software developers and allowing the installation of non-Microsoft software on its computers. The most recent gaffe of Microsoft with regulators happened just recently when its plans to purchase Activision Blizzard for $69 billion came to a halt due to regulators in the EU and UK interfering with the deal. Microsoft also has to settle with the US Federal Trade Commission to proceed with the purchase.
There are no words yet from the regulators if Microsoft will be allowed to complete the transaction. However, it is a high stake for Microsoft since buying Activision will make it a formidable force in the gaming industry, with Activision's huge franchises including "Call of Duty" and "Halo" being part of the deal.
