Microsoft Teams Changes – What You Need to Know

Microsoft 365 and Office 365 Enterprise suites that include Teams are once again available to all customers.

Microsoft has implemented significant Microsoft Teams changes to its Microsoft 365 and Office 365 licensing, following the conclusion of the European Commission’s competition investigation into the bundling of Microsoft Teams.

These Microsoft Teams licensing updates, which took effect on 1 November 2025, bring back more choice for customers and introduce new pricing structures that now apply globally.

What Changed on November 1, 2025

As of this month, Microsoft has announced that it has:

• Reintroduced all Microsoft 365 and Office 365 Enterprise suites with Teams (O365 E1, E3, E5 and M365 E3, E5).
• Will continue to offer versions without Teams, giving customers greater flexibility.
• Introduced a fixed price difference (delta) between suites with and without Teams.

This means:

• Suites without Teams are now cheaper by a fixed amount.
• The standalone Microsoft Teams licence costs at least as much as that price difference, ensuring consistent pricing logic.

What was the issue?

Following a competitor complaint, the European Commission (EC) opened a formal investigation in 2023 to assess whether Microsoft had breached EU competition rules by bundling Teams with its Office 365 and Microsoft 365 suites, giving it an unfair advantage over rival collaboration tools. The concern was that customers had limited choice to buy Microsoft 365 without Teams, potentially restricting competition in the market.

In response, Microsoft initially separated Teams from its 365 and Office 365 suites in Europe, offering it as a standalone product. After further discussions with regulators, Microsoft has now finalised a new approach designed to give customers greater flexibility and transparency in Microsoft Teams licensing.

The important bits

The previously retired Microsoft 365 and Office 365 suites with Teams have returned.

The “No Teams” SKUs have decreased in price.

The standalone Teams SKU has increased in price.

The changes apply to all commercial customers globally, not just in Europe.

Pricing for monthly and annual renewals is now based on the updated November 2025 structure.

How Microsoft Teams Licensing will work

Microsoft has committed to maintaining a fixed price difference (delta) between the two suite types:

• Suites without Teams will always be cheaper by a set amount.
• Standalone Teams will always cost at least as much as the delta.

This ensures consistent Microsoft Teams licensing logic and prevents customers from working around the pricing model by mixing and matching products separately. These pricing adjustments apply to all commercial customers worldwide, regardless of whether they are purchased through Volume Licensing or CSP (Cloud Solution Provider) programs.

The USD price delta will remain fixed for seven years (until 2032). Other currencies may fluctuate with exchange rates.

Beyond Pricing: Interoperability and Transparency

Alongside the licensing updates, Microsoft has also made long-term commitments to ensure greater interoperability and openness across its platform:

• Pricing and licensing commitments: fixed for seven years (until 2032).
• Data portability and interoperability commitments: fixed for ten years (until 2035).
• Microsoft will continue improving integration capabilities for third-party collaboration tools, enabling them to connect more easily with Microsoft 365 applications and Teams data.

What This Means for You

Organisations now have the flexibility to purchase Microsoft 365 or Office 365 Enterprise suites with or without Teams, depending on their preferred collaboration platform.

These Microsoft Teams changes deliver more transparent pricing and greater choice, allowing customers to align their Microsoft Teams licensing with how they actually collaborate.

Next Steps:

If you’d like to discuss how these updates may affect your organisation’s Microsoft 365 licensing or explore the most cost-effective configuration for your environment, our team is here to help.

At Krome, we are committed to helping you navigate these changes seamlessly. Our expertise as a Microsoft Direct Cloud Solutions Partner and Microsoft Gold Partner ensures that you receive the support and guidance you need to make informed decisions about your Microsoft 365 licensing.

For further information, please refer to the official announcements from Microsoft and feel free to contact our team with any questions or concerns.