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UK Watchdog Probes Microsoft's Software Bundles
16 Oct
Summary
- Britain's competition watchdog is examining Microsoft's software bundling practices.
- The investigation focuses on potential anti-competitive issues in business software.
- Microsoft could be designated with 'strategic market status' by February.
Britain's competition authority is proposing to grant Microsoft 'strategic market status' concerning business software. This designation could lead to interventions regarding how Microsoft bundles its products, including Excel, Teams, and the new Copilot AI assistant. The Competition and Markets Authority (CMA) initiated an investigation in May into whether these bundling practices were anti-competitive, affecting approximately 20 million monthly users in the UK.
The CMA found Microsoft holds a dominant position in areas like PC operating systems and productivity software, largely due to high customer switching costs. A Microsoft spokesperson stated the company disagrees with the CMA's proposal, emphasizing the interoperability of its offerings. The regulator is also evaluating customer choice for AI tools, competition for Copilot, and the impact of bundled security products and licensing on cloud deployments.
Views on the proposed designation will be considered before a final decision by February. If approved, Microsoft would join Google and Apple, which received similar statuses in October 2025 for their digital market activities. Earlier this year, the CMA imposed conduct requirements on Google's search services and ordered greater transparency in its search rankings.
