Microsoft, a technology giant, has announced a global split between its collaboration application, Teams, and its Office software.

1. Background:

• Teams is a messaging and video app developed by Microsoft.
• Initially added to Office in 2017.
• European Commission started investigating after a complaint from rival Slack in 2020.

2. The Split:

• Microsoft separated Teams from Office in Europe last year.
• Now, the split is happening globally to ensure clarity for customers.
• Aim is to provide more flexibility to multinational companies standardizing purchasing across different regions.

3. Pricing and Details:

• Teams Standalone will cost $5.25 (£4.20) for new customers.
• Decision to split may be a response to avoid EU antitrust charges.

4. Antitrust Concerns:

• Microsoft has faced 2.2 billion euros in EU antitrust fines over the past decade.
• Risk of further fines up to 10% of global annual turnover if found guilty.
• Similar antitrust issues faced in the past, notably in 1998 with the US Justice Department.

5. Market Impact:

• Teams’ user base remained stable after the split from Microsoft 365 and Office Suites in Europe.
• Monthly active users of Teams mobile app didn’t change significantly in the first quarter of 2024.

Conclusion:

• Microsoft’s decision to split Teams and Office globally aims to address concerns and provide clarity to customers.
• It also reflects ongoing efforts to navigate antitrust regulations and maintain competitiveness in the tech industry.