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Microsoft Hit with UK Competition Regulator Probe over Software Business

The probe could let the regulator impose conduct rules as it weighs whether Microsoft’s licensing limits competition for hundreds of thousands of UK users.

  • On Tuesday, the UK Competition and Markets Authority announced a Strategic Market Status investigation into Microsoft's business software ecosystem, commencing in May to address licensing concerns.
  • A July 2025 inquiry found Microsoft and Amazon each held up to 40% of UK cloud spend, with licensing practices identified as harming competition. Both firms recently took steps to reduce egress fees, yet the CMA says further action remains necessary.
  • The investigation spans Windows, Word, Excel, Teams, and Copilot, used by hundreds of thousands of UK businesses and public sector organizations. The probe could take up to nine months, potentially enabling the CMA to impose conduct requirements.
  • Nicky Stewart, senior advisor to the Open Cloud Coalition, welcomed the probe and urged "swift action" if Microsoft and Amazon fail to meet commitments. Some industry observers raised concerns that excluding Amazon from this investigation could create regulatory imbalance.
  • CMA CEO Sarah Cardell stated the designation would "ensure a level playing field as AI is rapidly embedded into everyday business software tools." Parallel investigations in Brazil and Japan signal growing international scrutiny of Microsoft's corporate software practices.
Insights by Ground AI

31 Articles

Lean Right

Competition Authority and United Kingdom Markets start antitrust research to evaluate regulation on products such as Word, Excel and the Copilt artificial intelligence application

·Brazil
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Evening StandardEvening Standard
+3 Reposted by 3 other sources
Center

Microsoft to face competition watchdog probe over business software

The CMA could designate SMS status, which earmarks companies with an entrenched market dominance and can force them to make changes.

·London, United Kingdom
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Bloomberg broke the news in United States on Tuesday, March 31, 2026.
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