Microsoft to Separate Teams from Office

The story dates back to July 2020 when an American start-up, Slack, later acquired by Salesforce, filed a complaint. The European Commission, which had suspicions that Microsoft was leveraging its dominant position in software to promote Teams at the expense of competitors, initiated an investigation shortly thereafter. If these suspicions prove true, Microsoft, which has been previously fined by the European Commission, could face another substantial penalty.

In response to the concerns raised by the European competition watchdog, Microsoft has decided to detach Microsoft Teams from its Microsoft 365 and Office 365 packages in the European Economic Area and Switzerland, starting from October 1st. This move was announced by Nanna-Louise Linde, the company’s Vice President. Customers will now have the option to purchase the Office suite without Teams at a reduced price.

The separation means that companies within the European Union can acquire Microsoft 365 subscriptions at a lower monthly cost, but without Microsoft Teams. Alternatively, they can choose to purchase a standalone version of the application for 5 euros per month or 60 euros per year.

“We will simply offer these packages without Teams at a lower price (2 euros less per month or 24 euros less per year),” explained Nanna-Louise Linde.

Microsoft Teams Moves Away from Microsoft 365 and Office 365

The new plans and pricing will only affect new subscribers, as existing business users can continue to renew their suites and add or remove users during renewals. They can even choose to upgrade to these new plans without Teams. This separation is primarily intended for larger enterprises, as Microsoft will continue to include Teams in its Microsoft 365 Business offers targeted at SMEs. Additionally, Microsoft will provide an option without the collaborative tool, priced at 1€ less per month for the Business Basic offer or 2€ less per month for the Business Standard or Premium offers.

“We are announcing proactive changes that we hope will significantly address these concerns, even as the European Commission’s investigation continues, and we collaborate with them,” stated Nanna-Louise Linde.