Microsoft to sell Office 365 without Teams in EU after antitrust case

Microsoft will comply with EU regulations for at least seven years under the agreement
An undated image. — Depositphotos
An undated image. — Depositphotos

Microsoft has resolved a long-running conflict with Slack in the European Union by agreeing to sell its Office 365 suites without Teams at a significantly reduced price.

After Slack filed a complaint in July 2020, the EU accused Microsoft of antitrust violations for combining Teams with Office 365 and Microsoft 365 subscriptions.

According to the agreement, Microsoft will adhere to EU regulations for a minimum of seven years, giving clients the freedom to select the collaboration and communication tools that best meet their requirements.

Office 365 suites without Teams will be available from the company at a steep discount; suites with and without Teams should see a 50% price reduction.

Additional clauses in the agreement will allow users to transfer their data out of Teams in the event that they decide to move to another platform, facilitate interoperability between Office programs and Teams rivals and allow customers to switch to licences without Teams.

In her praise of the agreement, EU Competition Chief Teresa Ribera stated that it "ensures that businesses can freely choose the communication and collaboration product that best suits their needs and opens up competition in this crucial market."

Additionally, the EU announcement "sends a clear message: Microsoft's anticompetitive tying of Teams has harmed businesses, denied customers fair choice, and resulted in many years of lost competition," said Salesforce Chief Legal Officer Sabastian Niles.

Microsoft Teams is predicted to continue to dominate the market despite the changes, with five times as many monthly users as Slack and $8 billion in revenue projected for 2024.

Although the agreement might not have a major impact on market dynamics, analysts predict that it will give consumers greater choice and flexibility.