UK CMA Launches Microsoft Software Market Probe

The UK's Competition and Markets Authority has launched a formal investigation into Microsoft's business software ecosystem to determine whether the company holds strategic market status, a designation that could prompt regulatory interventions to promote competition.

The probe, announced this week, examines whether Microsoft's practices in products including productivity software such as Word and Excel, Windows operating systems for personal computers and servers, Teams, Copilot, database management systems and security software limit customer choice. Regulators are focusing on product bundling, which may make it harder for third-party alternatives to integrate seamlessly; interoperability barriers that restrict combining Microsoft tools with rivals' offerings; and default settings that discourage switching providers. A key element involves assessing how competing artificial intelligence tools can integrate with Microsoft's software, ensuring businesses access the best AI options.

The CMA estimates Microsoft serves more than 15 million commercial users in the UK, spanning hundreds of thousands of businesses and public sector organizations. These products form a cornerstone of...