UK CMA Launches Investigation Into Microsoft Business Software Dominance

The UK Competition and Markets Authority has launched a Strategic Market Status investigation into Microsoft's business software dominance. The regulator will examine whether Microsoft holds SMS in business software and can use that position to limit customer choice.

CMA examines bundling and interoperability

The investigation will assess bundling of products, limits in interoperability, and default settings that may prevent customers from switching. It will also look at how Microsoft allows AI competitors to integrate with its software. Products under scrutiny include productivity software, PC and server operating systems, database management, and security software.

Sarah Cardell, Chief Executive of the CMA, said that hundreds of thousands of customers in the UK rely on Microsoft's systems, and that business software is a cornerstone of the country's economy. The CMA estimates Microsoft has up to 15 million commercial users in the UK.

If Microsoft is designated as having SMS, it could lead to a broader investigation into its cloud business in the UK. The CMA has not yet set a timeline for the investigation's conclusion.