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Microsoft’s proposal to split teams in Europe reportedly failed to satisfy EU regulators

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Microsoft has reportedly failed in its bid to prevent a formal complaint about how it sells its Teams collaboration service from being filed by the European Union. A new report says the European Union’s regulatory body, the European Commission, didn’t feel Microsoft’s plans to sell Teams as a standalone product were enough to avoid a possible penalty.

as per Bloomberg, via unnamed sources, the EC is “preparing a statement of objections to send to the company, which may arrive in the coming months.” The report didn’t say exactly why the EC doesn’t care about Microsoft’s solutions, nor did it suggest specific complaints or penalties the EC plans to bring against the company.

At the end of August, Microsoft announced that it will start offering Teams in the European Economic Area and Switzerland on its own and disconnected from its Microsoft 365 service as of October 1. The price for this standalone Teams service will be €5 per month or €60 per year per user. Microsoft has not announced any plans to offer Teams as a standalone product outside of Europe.

Current Microsoft Enterprise customers in those markets will be able to keep their current plan or get one without Teams on October 1 for a lower price. The company also promised to improve Microsoft 365 and Office 365 with better interoperability with other third-party devices.

At the time, Microsoft said it would continue to work with the EC during its ongoing investigation into its Teams business, adding that it “remains open to exploring pragmatic solutions that will benefit both customers and developers in Europe.”

So far, the EC has yet to comment on today’s report, and neither has Microsoft on Bloomberg’s new story. The Company may be able to make additional changes and reliefs to the EC to avoid possible penalties and submissions.

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