Microsoft's Strategic Move: Cheaper Office Without Teams to Mitigate EU Antitrust Tensions

Microsoft proposed offering its Office products without Teams at a lower price, aiming to resolve an EU antitrust case. The move follows complaints, notably from Slack, and could prevent a hefty fine. Proposal includes interoperability options and reduced price for Office 365 and Microsoft 365 without Teams.

Microsoft has proposed a new pricing strategy to offer its Office products without its communication tool, Teams, at a lower cost, according to EU antitrust regulators. This move could prevent a significant fine and ease tensions with U.S. trade policies as European regulators decide on accepting this proposal.

The proposal stems from a longstanding dispute initiated by a complaint from Slack in 2020, which argued against Microsoft's bundling practices. As part of the proposal, Microsoft pledges to ensure interoperability with competitors and gives European customers the ability to extract Teams messaging data for use in rival solutions.

If the European Commission approves, Microsoft would apply this pricing globally. Interested stakeholders are given a month to provide feedback. Microsoft's Vice President for European Government Affairs emphasizes that the proposal is crafted to meet competitors' concerns, potentially closing this regulatory chapter.

(With inputs from agencies.)