Microsoft’s Teams is finally flying solo in Europe, at least when it comes to its Office 365 and Microsoft 365 bundles. This change is a direct result of a three-year-long drama that started with Slack’s antitrust complaint. Slack argued that Microsoft’s bundling was illegal and restricted competition. The European Commission got involved, launching a probe into Microsoft’s practices.
Microsoft has decided to play ball with the European Commission. Starting October 1st, Teams will be sold separately from Microsoft’s productivity suites in the European Economic Area (EEA) and Switzerland. The company’s VP of European Government Affairs, Nanna-Louise Linde, stated that the move aims to address the Commission’s concerns while also supporting a competitive tech environment.
This unbundling could be a game-changer for Microsoft and the entire tech industry in Europe. It sets a precedent for how big tech companies bundle their services, potentially opening the door for more regulatory scrutiny.
The price hike
Here’s something that might raise your eyebrows. While the Office suite will cost €2 less each month, Teams as a standalone product will cost €5 a month. Do the math, and you’ll see that new enterprise customers will actually pay €3 more per month if they want both the Office suite and Teams. Taking into account that almost every team that’s using Teams needs Office suite as well, that’s nothing less than a price hike.
Can you keep your current plan?
Existing customers can stick with their current plans or switch to the new lineup, but new customers will have to decide whether they want Teams included in their subscription. Small businesses and frontline workers will still have the option to include Teams in their purchase. Microsoft is also planning to improve its documentation on interoperability with Microsoft 365 and Office 365 for rivals like Zoom and Slack.