Microsoft business software faces UK antitrust probe over bundling, AI lock-in

The UK Competition and Markets Authority opened a Strategic Market Status investigation into Microsoft’s business software operations under the UK’s digital markets regime. The regulator will assess whether Microsoft has substantial and entrenched market power and a position of strategic significance in business software markets. The investigation will examine whether Microsoft uses its position to limit competition in cloud services, cybersecurity, communications, and AI. The case is the fourth SMS investigation launched since the regime began in January 2025, following earlier investigations involving Google search, Apple’s mobile platform, and Google’s mobile platform. A designation decision is due by February 2027. The scope includes productivity software, operating systems, database management, and security software, naming Windows, Word, Excel, Teams, and Copilot, and covering more than 15 million commercial users in the UK ecosystem.

"The UK’s Competition and Markets Authority (CMA) said in a statement that it had opened a Strategic Market Status (SMS) investigation into Microsoft’s business software operations under the country’s new digital markets regime. The regulator said it will assess whether Microsoft has “substantial and entrenched market power” and a “position of strategic significance” in business software markets."

"“The investigation will assess whether Microsoft is using its position in business software to limit competition in cloud services, cybersecurity, communications, and AI,” the regulator said in a statement. The case is the fourth strategic market status (SMS) investigation the regulator has opened since the UK’s digital markets competition regime came into force in January 2025, following earlier SMS cases into Google search, Apple’s mobile platform, and Google’s mobile platform."

"“Our aim is to understand how these markets are developing, Microsoft’s position within them and to consider what, if any, targeted action may be needed to ensure UK organisations can benefit from choice, innovation and competitive prices,” CMA chief executive Sarah Cardell said in the statement. A designation decision is due by February 2027, the statement added."

"The scope covers productivity software, PC and server operating systems, database management, and security software, the CMA said, naming Windows, Word, Excel, Teams, and Copilot. Microsoft has more than 15 million commercial users across its UK ecosystem."

Read at Computerworld