UK investigates Microsoft's dominance in business software market
What's the story
Britain's Competition and Markets Authority (CMA) has proposed to designate Microsoft as a "strategic market status" holder in the realm of business software. The move could allow regulators to intervene in how the tech giant bundles its products, including Excel, Teams, and Copilot. The CMA launched an investigation in May into Microsoft's bundling practices for its business software products, which are used by nearly 20 million people monthly across the UK.
Market dominance
Microsoft's strong position in business software
The CMA found that Microsoft holds a strong position in key areas of digital activity, such as personal computer operating systems and productivity software suites.
The regulator also noted that Microsoft's strength in business software is largely due to the switching barriers customers face when trying to switch from one service provider to another.
Company statement
Microsoft's response to CMA's proposed decision
Responding to the CMA's proposed decision, a Microsoft spokesperson said they do not share the regulator's views.
The spokesperson emphasized that all their products, including Copilot, are open and interoperable. This means customers can use them alongside competing services.
The CMA is still looking into various aspects such as AI tool choice for customers, competition with Copilot, security product bundling limiting choice, and licensing practices affecting cloud deployment options for customers.
Regulatory impact
Final decision by February
The CMA will seek opinions on the proposed designation before making a final decision by February.
If approved, Microsoft would be the third company to fall under Britain's new digital market powers.
Google was given strategic market status in online search and mobile platforms, while Apple received the same for mobile platforms in October 2025.