The United Kingdom’s Competition and Markets Authority (CMA) has opened an investigation into Microsoft’s position in the business software market. The authority will examine whether the bundling of Microsoft products — including Windows, Word, Excel, Teams and Copilot — weakens competition and constrains market development.
This is the CMA’s fourth investigation of this kind since it received expanded powers last year. The agency says it aims to understand how the market is evolving, what role Microsoft occupies within it, and whether targeted interventions are needed so that UK organisations have access to genuine choice, innovation and competitive prices.
Scope of the inquiry
The CMA will:
- analyse Microsoft’s practices around bundling and software licensing for its business products;
- assess how those practices affect competition in cloud services and business applications;
- investigate how AI-focused competitors can integrate with Microsoft’s software suites.
The authority notes that it has previously found Microsoft’s licensing practices may have distorted competition in the cloud services market. If the CMA determines that Microsoft holds a “strategic market status,” it could implement targeted measures affecting the cloud market as well.
Comments from CMA and Microsoft
Sarah Cardell, chief executive of the Competition and Markets Authority, said business software is a cornerstone of the UK economy and that hundreds of thousands of customers rely on Microsoft systems. She stated the probe’s purpose is to reveal how the market is developing and the company’s position within it, and to assess whether intervention is necessary to protect choice, innovation and competitive pricing for British organisations.
A Microsoft spokesperson said the company is committed to working with the CMA in a timely and constructive manner.
Timeline
The CMA expects to conclude the investigation in February 2027. If the authority finds that Microsoft has strategic market status, that determination could lead to further regulatory action and targeted remedies.
