The Competition and Markets Authority has proposed giving Microsoft strategic market status over its business software ecosystem, according to the CMA. The regulator has opened a consultation before reaching a final decision and has set out an indicative roadmap of areas where it might intervene.
Key points
- Proposed designation — Microsoft would be formally classed as having strategic market status in business software.
- Scale of use — More than a million UK businesses and public sector organisations rely on its products, with roughly 20 million monthly users.
- Possible interventions — The CMA is looking at bundling of products and at making it simpler for other developers to plug into Microsoft's ecosystem.
- Cloud engagement — Talks with Microsoft and Amazon outside the formal process have already produced movement on customer choice.
The software under scrutiny includes Word, Excel, Outlook, PowerPoint, Teams and Copilot, plus Microsoft's security, server and operating system products. The CMA said its evidence points to a strong Microsoft position across personal computer operating systems, productivity suites, security software, server operating systems and database management systems.
According to the regulator, customers face barriers when trying to switch, which limits their options and weakens the pressure other developers can put on Microsoft. It also argues that commercial practices and integration advantages can push customers towards Microsoft's own products in ways rival firms struggle to match.
The roadmap covers three areas in particular: whether buyers can pick the AI tools that suit them and whether other AI providers can compete fairly with Copilot; whether the way Microsoft bundles and integrates security products narrows choice; and whether customers can genuinely decide which cloud they use for their software licences. Sarah Cardell, chief executive of the CMA, said the aim is to ensure businesses can choose and combine products freely, and she noted that engagement with Amazon and Microsoft on cloud services has already delivered improvements.
What it means in practice
Nothing changes immediately for anyone using Microsoft software at work. The consultation is a step towards a possible designation, and any remedies would come later, so licences, prices and contracts stay as they are for now.
- Watch your renewals — If your organisation is due to renew a Microsoft agreement, it is worth checking what is bundled in and what you actually use.
- Keep options open — Where you can, avoid tying every tool and service to one supplier, so switching stays realistic if rules change.
- Follow the consultation — Firms and public bodies can send views to the CMA before it makes its final call.
