NewsUC&C6 Sept 2023 · 2 min read

‘You Should Ask The FTC’ – Zoom CEO Responds to Teams EU Unbundling

Zoom says Microsoft Teams unbundling shows why buyers should watch Office 365, Microsoft 365 and EU antitrust costs.

Zoom CEO Eric Yuan has responded to Microsoft’s plans to unbundle Microsoft Teams from Office 365 and Microsoft 365 subscriptions.

The move, first announced last month, came following a Slack complaint which led to an EU investigation for anticompetitive behaviour.

In response, Microsoft said it would remove Teams from some subscriptions and sell it as a standalone licence. The move ultimately makes it more expensive for customers to buy Office 365 and Teams compared to when they were bundled together.

Zoom CEO Eric Yuan has now tentatively waded in, suggesting that the US Federal Trade Commission (FTC), which enforces antitrust law, should consider investigating in the same way as the EU anticompetition body – but stopping short of criticising Microsoft.

“No matter what, you’ve got to be fair,” Yuan said during a Goldman Sachs technology event (via Bloomberg).

“You should ask this question to the FTC as well,” he added.

Cost of Management

Yuan avoided speaking about specific competitors but said some organisations are quickly realising the cost of management “so-called free” services that are included with other software tools.

He added that Zoom’s ability to focus solely on collaboration technology means it can innovate faster and more efficiently than competitors that “bundle everything together”.

Zoom yesterday announced its generative AI-powered digital assistant, which will be included in all paid-for subscriptions at no extra cost.

What is Microsoft Doing?

Microsoft is planning to separate its Teams app from Office 365 subscriptions in Europe due to pressure from Slack and the European Union (EU).

Slack accused Microsoft of unfair competition because Teams was included for free in Office 365 subscriptions.

Microsoft's new approach, starting in October, will reduce Office 365 subscription costs by €2 per user per month by excluding Teams. Enterprises can purchase Teams separately for €5 per user per month.

Existing customers can stick with their current package or transition to the new model. This change mainly affects Microsoft's core enterprise customers, impacting certain Office 365 and Microsoft 365 licenses in the European Economic Area (EEA) and Switzerland. Small and medium-sized businesses will also have a "without-Teams option."