Microsoft Separates Teams Business Messaging App from Office Software Globally
In a bold move, Microsoft has announced the global separation of its Teams business messaging and video app from its Office software suite. This decision comes after the firm previously split the two products in Europe last year amidst potential fines from competition watchdogs.
The integration of Teams into Office was initially introduced in 2017, but it has faced scrutiny from the European Commission following a complaint from rival Slack in 2020.
A spokesperson from Microsoft informed the BBC that this move aims to “ensure clarity for our customers” and also responds to feedback from the European Commission by offering multinational companies greater flexibility in their purchasing decisions across different regions.
According to a blogpost by Microsoft, new customers can now access Teams Standalone for $5.25 (£4.20). However, it remains uncertain whether this separation will shield the company from potential European Union (EU) antitrust charges.
Microsoft has a history of facing EU antitrust fines, totaling 2.2 billion euros ($2.4bn; £1.9bn) over the past decade for practices related to product bundling. If found guilty of antitrust violations, the company could face fines up to 10% of its global annual turnover.
Notably, in 1998, the US Justice Department took legal action against Microsoft for leveraging its Windows platform dominance to suppress competition from rival web browsers. Since then, Microsoft has made adjustments to allow greater freedom for computer manufacturers in software installations, leading to the rise of alternative internet browsers.
Following the separation of Teams from the Microsoft 365 and Office Suites in Europe last October, market intelligence firm Sensor Tower reported minimal changes in the app’s user base. Data from Reuters indicated that monthly active users of the Microsoft Teams mobile app remained stable in the first quarter of 2024 compared to the previous quarter. — BBC
