Microsoft has announced that they will unbundle Teams from Office 365 for new business customers globally, expanding on the approach that was introduced in the European Economic Area and Switzerland last year. This means that Office 365 suites with Teams will no longer be sold to new business subscribers, but will still be available for existing customers who choose to continue using the bundled products. This move comes in response to the European Commission’s formal investigation into Microsoft’s bundling of communication and collaboration software into their business software suites, which was sparked by a complaint from Slack in 2020 before their acquisition by Salesforce.
The decision to unbundle Teams and Office 365 is aimed at providing more clarity for customers and addressing feedback from the European Commission, giving multinational companies more flexibility when standardizing their purchasing across different geographies. However, critics argue that this move is too little, too late and does not go far enough in promoting fair competition. Ryan Triplette, executive director of the Coalition for Fair Software Licensing, has stated that while the announcement may appear to support fair competition, it ultimately leaves interoperability and licensing restrictions in place that prevent true customer choice. The Coalition for Fair Software Licensing has called on the FTC to investigate Microsoft’s licensing practices in response to this decision.
Microsoft’s choice to unbundle Teams from Office 365 is a significant shift in their approach to offering these programs to business customers. By separating the two products, Microsoft is responding to concerns raised by the European Commission and is seeking to provide customers with more flexibility and clarity in their purchasing decisions. While this move has been met with criticism from some quarters, particularly regarding the potential impact on fair competition, it represents a step towards addressing issues related to licensing practices and promoting customer choice in the marketplace.
The rationale behind Microsoft’s decision to unbundle Teams from Office 365 is rooted in a desire to ensure that customers have a clear understanding of the products they are purchasing and to address feedback from regulatory authorities. By offering these programs separately, Microsoft aims to provide multinational companies with greater flexibility in how they standardize their purchasing across different regions. This move may also have implications for the broader technology industry, as it could potentially lead to increased competition and innovation in the communication and collaboration software market.
Critics of Microsoft’s decision to unbundle Teams from Office 365 argue that the company should go further in promoting fair competition and customer choice. While the move may address some concerns raised by the European Commission and other regulatory authorities, it may not go far enough in removing barriers to interoperability and ensuring that customers have access to a range of options when it comes to purchasing software products. The Coalition for Fair Software Licensing has called on the FTC to investigate Microsoft’s licensing practices in response to this announcement, highlighting ongoing concerns about competition and consumer choice in the technology industry.
Overall, Microsoft’s decision to unbundle Teams from Office 365 represents a significant shift in their approach to offering these programs to business customers. By responding to regulatory concerns and seeking to provide customers with more flexibility and clarity in their purchasing decisions, Microsoft is taking steps towards addressing issues related to licensing practices and promoting fair competition in the marketplace. However, critics argue that more needs to be done to ensure true customer choice and prevent anti-competitive practices in the technology industry. The implications of this decision remain to be seen, but it could lead to increased competition and innovation in the communication and collaboration software market.
