Microsoft to Cease Bundling Teams with Office to Avoid Antitrust Probe

 Business Edge

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Microsoft to Cease Bundling Teams with Office to Avoid Antitrust Probe

Microsoft will stop forcing customers of its popular Office software to also have its Teams video conferencing and messaging app automatically installed on their devices, in a move designed to prevent an official antitrust probe by EU regulators. The US tech giant has made the concession to avoid a formal investigation, said two people with direct knowledge of the decision, following a 2020 complaint by rival Slack which claimed Microsoft's practice of bundling the two services together was anti-competitive.

These people said that, in future, when companies buy Office they can do it with or without Teams if they wished, but the mechanism on how to do this remains unclear. The people stressed talks are still ongoing and a deal is not certain. The move is part of an effort by Microsoft to try to avoid what would be its first antitrust probe in more than a decade, having sought to avoid legal battles with the European Commission that have proved bruising in the past.

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Impact: We classify this news as a Market Impact, as it affects a specific market segment within the tech industry and has moderate regulatory implications for the software market. This decision by Microsoft could alter the competitive landscape for video conferencing and messaging apps and influence consumer choices within the market.