UK regulator proposes strategic market status for Microsoft in business software

The Competition and Markets Authority (CMA) has proposed designating Microsoft as having "strategic market status" for its business software suite, including Word, Excel, Teams and the Copilot AI assistant. The proposal follows a May‑launched investigation into whether Microsoft’s bundling of these products limits competition. Microsoft says its products are open and interoperable and does not share the regulator’s view. The CMA will seek comments and aim to decide by February.

If approved, the designation would allow the CMA to intervene in Microsoft’s bundling and licensing practices, potentially restricting how the company packages its software and AI tools. This could affect Microsoft’s pricing, product strategy and market dynamics in the UK.

  • 1The CMA proposed designating Microsoft with "strategic market status" in business software.
  • 2The regulator’s investigation, launched in May, focuses on Microsoft’s bundling of business software products.
  • 3Microsoft’s business software products have around 20 million monthly users across the UK.
  • 4The CMA will invite views and make a final decision by February.
  • 5If approved, Microsoft would become the third company subject to Britain’s new digital market powers, after Google and Apple.

Sources