Microsoft Inc (NASDAQ: MSFT) looks to modify its approach to selling its Teams videoconferencing software to European business consumers.
This move comes after the European Union's antitrust probe flagged potential concerns over the tech behemoth's sales practices in the region.
Starting in October, Microsoft will offer business clients the opportunity to acquire a more economical version of its productivity tools that doesn't encompass the Teams application, The Wall Street Journal reports. However, businesses that find value in Teams can still buy it as a separate service.
The decision will be valid across the European Economic Area, an assembly of European nations excluding the U.K. Furthermore, these changes will also encompass Switzerland.
Microsoft had initially attempted to address competition concerns by agreeing to stop automatically installing Teams on customers' devices after a complaint from rival company Salesforce, Inc (NYSE: CRM) Slack in 2020.
The European Commission scrutiny was triggered by suspicions over Microsoft misusing its influence by bundling the Teams app with its other productivity tools. Notably, this investigation marks the first time in over ten years that the EU has launched a formal probe against Microsoft.
Microsoft will reduce the price of its software suites that exclude Teams by approximately 2 euros ($2) monthly for most European business consumers. Existing clients with the Teams-inclusive suite or specific new ones will still have the option to keep their existing bundled packages. Also, Microsoft aims to enhance interoperability, facilitating competing app users to interact seamlessly with Microsoft-created documents.
Europe penalized Microsoft by €2.2 billion between 2004 - 2013 due to antitrust complaints.
Price Action: MSFT shares traded lower by 0.06% at $328.60 premarket on the last check Thursday.