Microsoft to Curb Antitrust Concerns by Removing Teams from Office Bundle

Urian B., Tech Times 25 April 2023, 02:04 am

Microsoft's decision to stop bundling Teams with Office is a potential sign that the company is willing to work with regulators rather than fight a grueling battle in court. While the legal tussles of the past remain clear, Microsoft's attempt to fend off Slack's call for antitrust action could be part of a new chapter for the company and its regulator.

Microsoft's Purchase of Activision Awaiting Approval: Potential Impact on Console Gaming

According to the story by Engadget, the idea of separating Teams from Office is an interesting one, as it could level the playing field for competing products in the remote collaboration space. If successful, Microsoft's move could be a template for other companies looking to appease regulatory concerns when offering complimentary services.

However, as of now, Microsoft is still in talks with EU regulators, and the precise details of any arrangement remain to be seen. Meanwhile, Microsoft continues to have its hands full, dealing with antitrust issues both at home and abroad.

Its Activision purchase - potentially making Microsoft a major force in console gaming, with 3 massive franchises in Halo, Gears of War, and Call of Duty - is still awaiting approval.

Microsoft's Attempt to Address Past Regulatory Concerns

As Microsoft attempts to ease those concerns and satisfy regulators for the upcoming decade, its decision to separate Teams from Office could substantially facilitate a new conversation between the company and its regulatory counterparts.

Microsoft's agreement to unbundle its Teams remote collaboration software from its Office productivity suite follows years of regulatory issues for the technology giant from the turn of the millennium to now.

Its most significant prior setback occurred in 2009 when it was forced to offer European customers a choice of a web browser. It was fined €561 million in 2013 for failing to adhere to that settlement, as also noted in an article by Europa.

EU Investigation of Microsoft and Purchase of Activision Blizzard

Microsoft is attempting to head off an official EU investigation as it scrambles to meet regulatory approval for its acquisition of video game publisher Activision Blizzard. At present, the manner in which companies can purchase Office with or without Teams installed is uncertain, with talks between Microsoft and the EU reportedly ongoing.

Slack competitor Salesforce filed a complaint with EU regulators in 2020, asking them to mandate the separate sale of Teams. Microsoft has since responded to the FT regarding its "responsibilities in the EU as a major technology company," signaling that it is open to "pragmatic solutions" to address the issue.

The Unbundling of Teams: Microsoft's Appeasement to EU Regulators

It is likely that additional details concerning the company's agreement to unbundle Teams will surface in the near future.

Microsoft plans to appease EU regulators while achieving its goal to acquire Activision Blizzard, a transaction expected to receive approval by both the EU and the UK as long as Microsoft complies with certain stipulations.

With Microsoft offering ten-year legal agreements to provide Call of Duty on Nintendo consoles and cloud-streaming platform Boosteroid, it appears that the tech giant is doing all it can to avoid another major antitrust setback.