- SLACKS Complaint about Bundling of Teams Software Since 2019 has finally been settled
- Microsoft should increase the price difference, make the pricing clearer and allow customers to downgrade
- Interoperability with other M365 -Software and options to migrate to alternatives covered as well
The Europe Commission has accepted Microsoft’s efforts to tackle competition problems over teams derived from a slap complaint regarding Microsoft’s bundling of teams to its SaaS packed from 2019.
Antitrust regulators found that Microsoft had a dominant position as a result of tying teams to Office 365/Microsoft 365 suites, giving it an advantage over rivals, but the company has worked closely with the Commission for a number of years to rectify this position.
The Microsoft and the Europe Commission now agree on legally binding conditions to settle the complaint once and for all, and this means that subscription should offer even more value to European customers.
Hold/EU debate when finally legally binding settlement
Microsoft’s previous efforts to sell some suites without teams, though recognized, eventually ended up being inadequate.
Now Microsoft has agreed to sell Office 365/Microsoft 365 without teams at a reduced price, which increases the existing price difference between bundles with and without teams by another 50%. Parallel offers are also clearly displayed on Microsoft’s websites.
Customers with long-term licenses must also be allowed to switch to team-less licenses if they wish.
From a technical point of view, Microsoft will ensure interoperability for the team’s rivals with its office software, including Word and Excel. It will also allow them to integrate Office webapps into their own tools, just as teams already offer today.
Companies that now want to change platform must have access to data portability tools for easier exports.
“Today’s decision is therefore opening competition in this crucial market and ensures that companies are free to choose the communication and collaborative product that best suits their needs,” commented Renesa Ribera Ribera.
Microsoft VP for European government affairs Nanna-Louise Linde added: “We appreciate the dialogue with the Commission that led to this Agreement, and we are now approaching these new obligations immediately and fully.”
The efforts of European regulators are far -reaching, and we can largely thank Slack for its original complaint because the changes do not only affect European customers. Microsoft must apply these obligations around the world, which must be in force for seven years. Obligations on interoperability and portability last a total of 10 years.
Failure to comply will land Microsoft in a lot of problems – up to 10% of its global turnover in fines or daily penalties.
