Microsoft Unbundles Teams Video Conferencing in Europe

Microsoft has announced plans to unbundle Teams video conferencing from its other software offerings in Europe, in response to regulatory concerns and a competition complaint from Salesforce-owned Slack. This move aims to address the European Union's formal investigation and create a level playing field for competitors.

Starting from October 1st, Microsoft will sell its software to businesses in Europe differently. It will offer Microsoft 365 and Office 365 suites without Teams at a reduced price, while also improving interoperability with its software. These changes are intended to strike a balance between competitors' interests and the needs of European business customers, as mentioned by Nanna-Louise Linde, Microsoft's Vice President of European Government Affairs.

This decision is seen as a victory for Slack, one of Teams' primary competitors. In July 2020, Slack filed a competition complaint against Microsoft with the European Commission, claiming that the company was engaging in illegal and anti-competitive practices by tying Teams to its dominant Office software services.

Following this announcement, Microsoft shares saw a slight increase in premarket trading. Meanwhile, Salesforce experienced a 5.3% rise in its stock after reporting second-quarter earnings that exceeded analysts' expectations.