Microsoft Hit with UK Competition Regulator Probe over Software Business
The probe could force Microsoft to change licensing terms for software used by hundreds of thousands of UK businesses and public sector organisations.
- 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.
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The UK’s Competition and Markets Authority has opened a formal investigation into Microsoft’s dominance in cloud infrastructure and enterprise software, a move that could reshape how the world’s second-most-valuable company bundles and sells its products to businesses worldwide. The probe, announced on March 31, 2026, targets Microsoft’s practices in cloud computing, productivity software, and cybersecurity — three pillars that collectively gene…
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Times of IndiaMicrosoft business software faces UK competition probe
Britain's competition watchdog announced plans on Tuesday to launch an investigation into Microsoft's business software systems, under new measures targeting the dominance of technology giants.
Competition Authority and United Kingdom Markets start antitrust research to evaluate regulation on products such as Word, Excel and the Copilt artificial intelligence application
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