Microsoft has ‘strategic market status’ in business software, UK CMA proposes

The UK Competition and Markets Authority proposed granting Microsoft strategic market status for business software, potentially impacting its bundling practices. The regulator claims Microsoft's dominance restricts competition, while Microsoft disputes this, stating its products are open and compatible. A final decision is expected by February. According to the authority, 20 million UK users engage with Microsoft's products monthly.

Microsoft (MSFT) plans to expand its custom Maia chips in Azure data centers, reducing reliance on Nvidia (NVDA) GPUs. CEO Satya Nadella stated Maia will be the primary inference system for Microsoft's products. Marvell Technology (MRVL), Microsoft's chip partner, could see significant revenue growth. Microsoft's $175B data center spending may benefit Marvell, which aims to grow revenue tenfold in five years.

UK's CMA proposed designating Microsoft with 'strategic market status' in business software, citing its strong position and bundling practices. Microsoft disputes the findings, stating its products are open and interoperable. The CMA will gather views and decide by February. If approved, Microsoft would be the third company under Britain's digital market powers. Google and Apple were designated in 2025.

The UK's Competition and Markets Authority (CMA) proposed designating Microsoft as a strategic market status (SMS) firm in its business software ecosystem, with a final decision expected by February 2027. The CMA cited Microsoft's strong position in five digital activities, including operating systems and productivity software, serving over a million businesses and 20 million monthly users in the UK.

Microsoft President Brad Smith warned that US restrictions on green cards for skilled foreign workers could harm the tech sector. He denied allegations of H-1B visa abuse and emphasized the company's US hiring. The Trump administration suspended the PERM program for Microsoft and other IT firms, halting new and pending applications.

The Trump administration suspended a green card program for foreign skilled workers at Microsoft, Adobe, and six other tech firms, citing $20B in visa fraud. The move targets the PERM program, which transitions H-1B visas to green cards, and J-1 visas for universities. Tech leaders and politicians have historically supported skilled immigration, but critics argue it undercuts American wages and jobs. Microsoft submitted 6,000 H-1B applications last fiscal year, 80% for existing employees.