On September 1, 2025, Microsoft updated the Teams API terms for Security Applications. These changes ensure compliance with EU regulations, including the EU Data Act and GDPR. The update affects licensing, billing, data residency, and interoperability for security apps integrating with Microsoft Teams.

What is Microsoft Teams API for Security Apps?
Microsoft Teams API for Security Apps allows security and compliance solutions to integrate with Microsoft Teams. These integrations enable organizations to manage compliance, eDiscovery, auditing, and security workflows within Teams.
Key Features
The September 2025 update introduces the following key changes:
- Licensing Requirements
- End users of security apps using Teams APIs must have eligible Microsoft 365 E5 licenses (e.g., E5 Compliance, E5 eDiscovery & Audit).
- Billing Terms
- Microsoft will charge customers for data consumption exceeding the monthly seeded allowance in review sets.
- These billing terms override any conflicting terms in the general Microsoft API Terms of Use.
- Data Residency & EU Data Boundary
- Customer data at rest for Teams must be stored within the EU Data Boundary for customers in the EEA and Switzerland.
- Limited transfers outside the EU are allowed only for specific operational or customer-initiated reasons.
- Messaging Policy Compliance
- Teams SMS messaging services must comply with the Teams SMS Messaging Policy.
- Microsoft may share application details with telecom operators for regulatory approval and may suspend services for non-compliance.
- Health Sector Use
- Teams is not a legal medical record system.
- Customers must obtain consent and display disclaimers when using Teams in healthcare scenarios.
- Interoperability
- Azure Communication Services can interoperate with Teams, but usage may incur additional Azure-based fees.
Licensing
Organizations must ensure that all users of security apps leveraging Teams APIs have the correct Microsoft 365 E5 licenses.
For detailed licensing guidance and compliance strategies, consult SCHNEIDER IT MANAGEMENT for expert advice.
More Information
For the official Microsoft Product Terms and full details, visit:
https://www.microsoft.com/licensing/terms
For our Microsoft page, please visit: https://www.schneider.im/software/microsoft.
Please contact us for expert services on your specific Microsoft software and online services requirements and to request a quote today.
