Microsoft to Unbundle Teams Software in Europe, Delivering Win to Salesforce’s Slack
Microsoft is planning to unbundle its Teams video conferencing software in Europe in order to address regulatory concerns and give a victory to Salesforce's Slack.
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Posted 8/31/2023, 9:36:00 AM
barrons.com
Relevant topic timeline:
- The European Commission has opened a formal probe into Microsoft's alleged improper tying of its Teams collaboration software to its Microsoft 365 productivity suite.
- The Commission is concerned that Microsoft may be forcing customers to include Teams with their Microsoft 365 subscriptions, which could harm competitors like Slack.
- Slack had lodged the initial complaint against Microsoft over three years ago, leading to the current investigation.
- Microsoft has managed to avoid antitrust regulators for over a decade but is now facing scrutiny from the European Commission.
- The outcome of the probe could have significant implications for Microsoft's business practices and competition in the collaboration software market.
Microsoft will unbundle its chat and videoconference service Teams from its Microsoft 365 productivity suite to address European Union antitrust concerns, offering the packages without Teams at a discounted price starting October 1.
Microsoft is unbundling its chat and video app Teams from its Office product and making it easier for competing products to work with its software in an attempt to address European Commission concerns, but rivals argue that it may not be enough to avoid a potential EU antitrust fine.
Zoom Video Communications saw its shares rise by nearly 2.2% after Microsoft announced it would unbundle its Teams app from the Office software suite, benefiting smaller tech companies like Zoom.