Microsoft unbundles Teams in Europe: what it means for you
3 minute read
Phoenix Software
November 18th, 2025
In a move to address regulatory concerns and foster a more open digital ecosystem, Microsoft has announced significant changes to its productivity suite offerings in Europe. This includes unbundling Microsoft Teams from Microsoft 365 and Office 365, a decision that marks a shift in how collaboration tools are packaged and delivered.
Microsoft has long positioned Teams as a cornerstone of modern workplace collaboration. From daily stand-ups to global webinars, Teams has become linked with productivity. However, in response to an investigation by the European Commission into bundling practices, Microsoft is making strategic adjustments to how Teams is offered within its suite of services.
What’s changing?
Starting with this announcement, Microsoft will offer versions of Microsoft 365 and Office 365 without Teams in the European Economic Area (EEA). Customers will now have the flexibility to choose suites with or without Teams, with clear pricing distinctions. This change is designed to enhance customer choice and support a more competitive landscape.
Commitments to interoperability and data portability
Microsoft is also doubling down on its commitment to interoperability. The company will maintain its add-in model, allowing third-party communication and collaboration providers to integrate seamlessly with Microsoft 365 and Teams. Additionally, Microsoft will continue to support the AppSource marketplace and enable other providers to embed Office Web Applications via the Microsoft Document Collaboration Partner Program (MDCPP).
Crucially, Microsoft is enhancing access to customer data through APIs that mirror what Teams accesses from services like Microsoft Entra ID, Exchange Online, SharePoint Online, and OneDrive. This empowers customers with greater control over their data and supports open ecosystems.
Why it matters
For partners and customers, these changes represent a shift towards transparency, flexibility, and fairness. By unbundling Teams and reinforcing interoperability, Microsoft is not only addressing regulatory concerns but also paving the way for innovation and collaboration across platforms.
Global implications
While the changes are focused on the EEA, Microsoft has indicated that it may align licensing and pricing globally to ensure consistency. This could mean similar options becoming available in other regions, streamlining decision-making for multinational organisations.
Let’s talk about your Microsoft licensing strategy
If you’re unsure how these changes might affect your organisation, or you’re considering whether to opt for Microsoft 365 with or without Teams, our experts are here to help.
Get in touch today to review your current setup, explore your options, and ensure you’re making the most of your Microsoft investment.
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About the author
Phoenix Software
Phoenix enables digital transformation in the workplace, empowering UK public sector organisations to innovate and transform with cloud and hybrid infrastructures, data, AI, security, and collaboration tools. By understanding its customers’ goals, Phoenix delivers outcome–focused IT solutions that make a difference to the lives of employees, service users, and communities.
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