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Microsoft Faces UK Antitrust Probe Over Software
31 Mar
Summary
- UK probe to assess Microsoft's software licensing practices.
- AI integration in workplace tools heightens regulatory concern.
- Cloud market competition also under ongoing CMA review.
The UK's Competition and Markets Authority (CMA) has launched an antitrust investigation into Microsoft Corp.'s business software ecosystem. Commencing in May 2026, the probe will scrutinize the licensing practices for popular products including Word, Excel, and the AI assistant Copilot. The CMA will decide if Microsoft's software offerings warrant designation as having 'strategic market status,' which would enable the regulator to enforce competition-improving measures and penalties.
This investigation is driven by broader concerns regarding Microsoft's dominance in business software, encompassing productivity tools, operating systems, and database management. The integration of advanced AI, such as assistants and emerging agentic technologies, into these widely used workplace applications is considered a critical development by the CMA.
Separately, the CMA is continuing its collaborative efforts with Microsoft and Amazon Web Services (AWS) regarding the cloud services market. Both companies have committed to significant steps aimed at fostering greater competition and improving customer choice in cloud services, which the CMA will continue to monitor. This ongoing review follows a previous CMA investigation that identified competition concerns, noting that Microsoft and AWS each held substantial shares of the UK customer spend on cloud services.
