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UK probes Microsoft's business software dominance
14 May
Summary
- Britain is investigating Microsoft's dominance in business software.
- The probe will examine how bundling of software affects competition.
- The investigation is expected to conclude by February 2027.
The UK's Competition and Markets Authority (CMA) has initiated an antitrust investigation into Microsoft's significant presence in the business software sector. This inquiry, operating under new powers, will investigate whether the practice of bundling essential software such as Windows, Word, Excel, and Teams stifles competition. A key focus will be on how artificial intelligence competitors can integrate with Microsoft's suite.
This investigation could result in Microsoft being designated with "strategic market status," empowering the CMA to intervene further, particularly in the cloud market where licensing practices have previously raised competition concerns. Microsoft has stated its commitment to cooperating constructively with the CMA's review.
The investigation is a significant step to ensure that UK businesses can access innovation and competitive pricing in their software solutions. The CMA aims to understand market dynamics and Microsoft's position within them to determine if any targeted action is necessary. The inquiry is scheduled to conclude by February 2027.
