
Microsoft offers to price Office without Teams cheaper to end antitrust probe
BRUSSELS : Microsoft has offered to sell its Office product without Teams at a lower price than Office with Teams, as well as offer rivals better interoperability access to its services and products, EU antitrust regulators said today.
The European Commission said it was now going to seek feedback from rivals and customers before deciding whether to accept the offer.
Reuters was the first to report the move earlier this week.
If accepted, Microsoft's offer would bring an end to a long-running case triggered by a 2020 complaint by Salesforce-owned Slack, which could have resulted in a hefty antitrust fine for the US tech giant.
Microsoft's vice-president for European Government Affairs Nanna-Louise Linde said in a blogpost that the proposal was a clear and complete resolution to concerns raised by rivals and would give Europeans more choice.
'Microsoft's offer would allow Europeans to buy Office 365 and Microsoft 365 suites without Teams at a lower price than that for corresponding suites that include Teams,' the EU competition enforcer said.
'Rivals could get access to and have effective interoperability with certain Microsoft products and services for specific functionalities and could also embed Office Web Applications (Word, Excel, and PowerPoint) in their own products, and they could prominently integrate their products in Microsoft's core productivity applications,' the EU said.
Customers in Europe would be able to extract their Teams messaging data for use in competing solutions.
The pricing offer would be valid for seven years and interoperability for 10 years.
Microsoft said if its pricing offer is accepted, it would align the options and pricing for its suites and Teams service globally.
Interested parties have a month to provide feedback. Salesforce said it would carefully scrutinise the offer.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


New Straits Times
3 hours ago
- New Straits Times
End of tax-free loophole for low-value goods disrupts air shipments to US from China
SHANGHAI/SEOUL: Air cargo shipment volume from Asia has declined by double digits since the US cancelled a tax-free exemption for low-value packages from China early in May, trade groups and analysts said. Air cargo demand from Asia to North America declined 10.7 per cent in May versus the same month a year earlier, showed data from the International Air Transport Association (IATA), illustrating "the dampening effect of shifting US trade policies," IATA Director General Willie Walsh said in a report published on Monday. Shipments valued under US$800 – often sent by air to US customers of low-cost e-commerce platforms such as Shein and PDD's Temu – fell under the so-called de minimis, or too-small-to-matter, tax exemption. Since May 2, however, such shipments sent from China and Hong Kong have been taxed at a rate initially as high as 145 per cent before settling to as low as 30 per cent after a mid-May trade détente between the US and China. The pair continue to negotiate on trade, with the US relaxing export restrictions on software, ethane and aerospace to China this week, ahead of July 9 when the US plans to re-impose a range of steep tariffs targeting multiple countries. The volume of low-value e-commerce shipments from China to the United States in May saw a particularly steep decline, industry experts said. Such shipments fell 43 per cent in May from the previous month, showed estimates from air cargo consultancy Aevean, but rose to other main export markets including Europe and South-East Asia. It is not clear whether such dramatic declines will continue, said Aevean Managing Director Marco Bloemen, given businesses had anticipated the de minimis halt and because the tariff rate was lowered mid-month. "Will those e-commerce players bounce back to the US now they're paying 30 per cent duties instead of zero duties?" Bloemen said. Companies turning to other markets due to US trade policy uncertainty is also likely weighing on shipment volume, he said. "That's a trend that we're expecting to continue – there's more Europe-destined e-commerce expected in the month of June, also to markets like Latin America." Air cargo consultancy Rotate said e-commerce platforms were focusing on other markets to replace lost US demand, with significant export growth to the European Union and Asia-Pacific region. Shein and PDD did not immediately respond to Reuters' requests for comment. Cargo cut-backs Low-value e-commerce out of Asia has been taking an increasing proportion of global air freight and boosting airlines' cargo businesses. Last year such shipments – at 1.2 million metric tons – made up 55 per cent of goods shipped from China to the US by air compared to just five per cent in 2018, Aevean data showed. As Asia-to-US demand fell in May, airlines pulled freighter aircraft off trans-Pacific routes and placed them elsewhere, industry experts said. Some of that demand has now returned as companies take advantage of tariff pauses between the US and a number of countries, but flight frequencies are reduced, they said. "Some of the larger players that were chartering three flights a week have cut back to two," said e-commerce consultancy Cirrus Global Advisors. Direct freighter capacity between China and the US in June was 11 per cent lower compared to March, wiping out growth in capacity over the past year on those lanes, Rotate data showed. Asia-focused freight forwarder Dimerco Express estimated its e-commerce bookings were down 50 per cent in May and June. As a result, scheduled freighter flights continue to be cancelled, it said in a report. The de minimis rule, which dates to 1938, had been a target of criticism from American lawmakers as a loophole that lets Chinese products skirt US tariffs and allows illegal drugs and precursors to make opioid fentanyl to enter the US unscreened.


The Star
7 hours ago
- The Star
Microsoft signs deal to power Premier League's AI tools
A five-year 'strategic partnership' will see the UK football league, the world's most watched, migrate its 'core technology infrastructure' to Microsoft's Azure cloud-computing service, the company and league said in a statement. — AP Microsoft Corp has signed a cloud computing deal with the Premier League, a pact that will let the software company tout its AI technology to a captive audience of sports fans. A five-year "strategic partnership' will see the UK football league, the world's most watched, migrate its "core technology infrastructure' to Microsoft's Azure cloud-computing service, the company and league said in a statement on July 1. The Premier League's mobile apps and website will feature an artificially intelligent chatbot powered by Microsoft's AI services, as will the league's fantasy games. "This is the future of football,' Microsoft UK chief Darren Hardman said in an interview with Bloomberg Television. "It's data-driven drama, it's smarter stats, it's deeper stories, it's a better connection of the fan to what's going on.' He and Will Brass, the Premier League's chief commercial officer, declined to discuss the financial terms of the deal. Oracle Corp previously provided cloud-computing services to the league, but the arrangement expired at the end of the season earlier this year. Technology and sports marketing tie-ins are a crowded field, particularly in global football. Microsoft's Copilot brand is the sponsor for Beyond Stats, a service that provides game and team analysis for fans of Spain's top football division, La Liga. The stats that pop up during Germany's Bundesliga are festooned with the Amazon Web Services logo. Such deals are prized by technology companies because sports is the rare entertainment that people still watch live. In the 12 years since Microsoft struck a deal with the National Football League to place its tablets in the hands of team coaches, the tech industry has looked for creative ways to go beyond plastering their brand names on league signage. – Bloomberg


Malaysia Sun
13 hours ago
- Malaysia Sun
Microsoft to lay off nearly 4% of its workforce
Washington DC [US], July 3 (ANI): American tech giant Microsoft will lay off nearly 9,000 employees, about 4 per cent of its workforce -- in what is its third round of job cuts in recent months, the company confirmed on Wednesday (local time), according to a CNN report. The report said this is Microsoft's largest round of layoffs since 2023, when it cut 10,000 jobs. The move comes amid a broader wave of job cuts in the global tech industry. 'We continue to implement organisational changes necessary to best position the company and teams for success in a dynamic marketplace,' a Microsoft spokesperson said in a statement, quoted by CNN. The spokesperson also said the company aims to streamline its management structure and improve productivity by leveraging new technologies. Many technology firms, including Microsoft, are turning to artificial intelligence (AI) to boost employee efficiency. Earlier this year, Microsoft CEO Satya Nadella said that between 20 and 30 per cent of the company's code is now written by AI, as Microsoft continues to invest heavily in AI infrastructure. Meanwhile, several reports have projected a sharp rise in global AI spending. According to a UBS report, global AI investment is expected to grow by 60 per cent year-on-year in 2025 to reach USD 360 billion. This upward trend is likely to continue into 2026, with another 33 per cent increase projected, pushing the figure to USD 480 billion. However, UBS anticipates that the share of AI spending by the so-called Big Four tech giants, Microsoft, Amazon, Alphabet, and Meta, will fall from 58 per cent in 2025 to 52 per cent in 2026. Spending outside these major firms is projected to reach USD 150 billion in 2025, with China accounting for an estimated 35 per cent of that amount. (ANI)