Microsoft unbundles Teams from Office 365 suites amid EU probe
04/02/2024 10:11
Microsoft (MSFT) will be changing its licensing for its app Microsoft Teams and digital suites Microsoft 365 and Office 365 as it faces antitrust concerns from European Union (EU) regulators. Yahoo Finance Tech Editor Dan Howley breaks down the details. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Luke Carberry Mogan.
Microsoft (MSFT) will be changing its licensing for its app Microsoft Teams and digital suites Microsoft 365 and Office 365 as it faces antitrust concerns from European Union (EU) regulators. Yahoo Finance Tech Editor Dan Howley breaks down the details.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor's note: This article was written by Luke Carberry Mogan.
Video Transcript
JOSH LIPTON: Microsoft announces a realigning of global licensing with changes to enterprise suites move coming as the tech giant faces an ongoing antitrust investigation in you. Yahoo Finance's Tech Editor Dan Howley is here with the very latest. Dan.
DAN HOWLEY: That's right, Josh. They're essentially pulling teams away from Microsoft 365. And so rather than having Teams built into the app, you're going to have to purchase it separately.
This is as a result of some antitrust kind of inquiries into how Microsoft does business with Teams. It's been getting some heat from competing companies, including Salesforce, which owns Slack, which is a competitor to Teams. Microsoft had started putting Teams into its office suite of programs.
Around the pandemic, it basically had replaced Skype and become a kind of video chat and text chat platform for workers. And it's taken off it's doing well.
Slack, obviously, not happy with that Salesforce, not happy with that the fact that it's part of the office. Bundle is a problem. So in the EU, they started to pull that back. And now, they're going to do that globally partially to offset any complaints from the EU saying, look, it makes it a problem for European companies that operate globally, as well as global businesses.
And partially, so that they can get away from any issues that they may see as far as antitrust goes within the US with this kind of bundling. So companies will still be able to buy Teams. It'll just be $5.25 per user. And then they'll still be able to get Office 365 without Teams. Prices for that will range from 7.75, a user to 54.75 a user.
So, obviously, this is going to be something that Microsoft isn't happy with. But if it gets them to avoid any kind of fine, then they're going to go ahead and do it. And so they're going to start doing that after April 1st.