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Impact of Microsoft Teams Unbundling from Office on Sales

Apr 2, 2024

Microsoft has announced that it will sell Microsoft Teams separately from its Office product globally. The company first unbundled the products in Europe to avoid potential antitrust fines from the EU and Switzerland, following a complaint filed by Salesforce. Microsoft introduced standalone Teams offerings for Enterprise customers outside the mentioned regions and updated its commercial Microsoft 365 and Office 365 suites to exclude Teams. The price of the standalone Teams subscription will be $5.25, while the Office Suite without Teams will range from $7.75 to $54.75 depending on the product.

Even after the unbundling in Europe in October 2023, Microsoft Teams' user base has remained stable, according to Sensor Tower data. This move aims to address EU antitrust concerns and provide multinational companies with more flexibility in their purchasing decisions. However, critics argue that the changes may not be sufficient to prevent future antitrust charges or eliminate concerns about fair competition pricing. Microsoft has faced substantial antitrust fines in the past for bundling products, totaling 2.2 billion euros ($2.4 billion) over the last decade.

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