Microsoft’s Teams Messaging and Video App Goes Solo: Will it Avoid Antitrust Charges?

Microsoft has recently split its Teams business messaging and video app from its Office software globally. The move comes after the company faced a possible fine from competition watchdogs in Europe last year, following a complaint from rival Slack in 2020.

The European Commission has been investigating the move made by Microsoft to add Teams to Office in 2017, which led to concerns about bundling or tying products together. A Microsoft spokesperson stated that the split is aimed at providing clarity for customers and addressing feedback from the European Commission, as well as allowing 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 will be sufficient to avoid potential EU antitrust charges, given Microsoft’s history of incurring fines for similar practices in Europe and the US. If found guilty, Microsoft could face a fine of up to 10% of its global annual turnover.

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 or adoption rates. Despite this news, it is important for users to understand their options and make informed decisions about which tools they use for their business needs.