Microsoft will introduce a new version of Microsoft 365 and its Office 365 subscription service that excludes Teams, it told Reuters, releasing a suite after scrutiny from a European Union regulator and complaints from rival Slack.
The move follows Microsoft’s agreement to sell the Office 365 suite without Microsoft Teams that it offers in the EU and Switzerland last year. The company introduced Teams as a free offering in its Office 365 suite in 2017.
Microsoft has enjoyed an unfair advantage by bundling the two offerings, many businesses argue. Slack, which is owned by Salesforce, called the move “illegal” claiming that Microsoft forced the installation of Teams on customers through its market-dominating productivity suite and hid the true cost of the chat and video service.
In a statement to ReutersMicrosoft said the split “also addresses feedback from the European Commission by giving multinational companies more flexibility when they want to standardize their purchases across geographies.”
Microsoft is offering flexibility to its existing customers, allowing them to keep their current bundle that includes Teams, Office and other products, Reuters reported. These customers can choose to renew their current agreement, update it or choose a new offer that better suits their needs.
For new customers, Microsoft has introduced standalone pricing for Teams at $5.25 per user per month. Additionally, Office packages without Teams will be available for prices ranging from $7.75 to $54.75, depending on the specific package and features included.
Reuters reported that Microsoft will unveil the new Office 365 series on Monday. Microsoft had not implemented the change at the time of publication.
TechCrunch has reached out to Microsoft for more details. We’ll update the story as we learn more.
