Microsoft has announced the global separation of its Teams business messaging and video app from its Office software suite. The decision comes after the firm previously split the products in Europe last year amid concerns raised by competition watchdogs.
Teams, a collaboration application integrated into Office since 2017, has been the subject of an investigation by the European Commission following a complaint from rival Slack in 2020. The move to split Teams from Office aims to provide clarity for customers and address feedback from regulatory bodies.A Microsoft spokesperson emphasized the decision’s goal of offering multinational companies more flexibility in their purchasing strategies across different regions. However, it remains uncertain whether this action will be sufficient to avoid potential antitrust charges from the European Union (EU).
Microsoft’s history with antitrust fines includes penalties totaling 2.2 billion euros over the past decade for bundling or tying products together. The company faces the risk of fines up to 10% of its global annual turnover if found guilty of antitrust breaches.The separation of Teams from Office follows a similar move made in Europe last October. Despite this change, data indicates that the user base of the Teams platform saw minimal fluctuations, according to market intelligence firm Sensor Tower.
Microsoft’s decision to split Teams globally coincides with ongoing developments in the tech industry, including Mustafa Suleyman, the co-founder of DeepMind, joining Microsoft to lead its AI initiatives. Additionally, recent controversies, such as Elon Musk suing OpenAI over Microsoft links and tech firms pledging action on ‘deceptive’ AI in elections, underscore the complex landscape of technology and regulation.