UK CMA Probes Microsoft’s 15 Million-User Software Ecosystem Over AI and Cloud Lock-In
Updated
Updated · Computerworld · May 15
UK CMA Probes Microsoft’s 15 Million-User Software Ecosystem Over AI and Cloud Lock-In
12 articles · Updated · Computerworld · May 15
A Strategic Market Status investigation will test whether Microsoft holds entrenched power across UK business software and uses it to curb competition in cloud services, cybersecurity, communications and AI; a designation decision is due by February 2027.
The CMA said it will examine bundling, interoperability limits and default settings across Windows, Word, Excel, Teams and Copilot, focusing on whether customers can combine Microsoft products with rival AI tools or switch providers easily.
The probe could revive concerns from the CMA’s earlier cloud review, which found Microsoft licensing reduced cloud competition; AWS had argued 2019 and 2022 licensing changes made Microsoft software harder to run on rival clouds.
This is the CMA’s fourth SMS case since the UK regime began in January 2025 and its broadest yet, spanning productivity software, operating systems, databases and security rather than a single narrower activity.
Could the CMA’s crackdown on Microsoft’s software ecosystem finally break the cycle of vendor lock-in and reshape the future of AI in business software?
How might stricter interoperability and licensing requirements for Microsoft ripple across global tech markets and affect everyday business software users?
Microsoft Faces UK CMA’s Strategic Market Status Probe: Examining Licensing, Bundling, and AI Integration in a £35 Billion Software Empire
Overview
In May 2026, the UK's Competition and Markets Authority (CMA) launched a Strategic Market Status (SMS) investigation into Microsoft's business software ecosystem. The CMA aims to assess Microsoft's market power and influence in the digital economy, deciding whether Microsoft should receive SMS designation. If designated, Microsoft could face stricter oversight and behavioral remedies under the UK's new digital markets regime. The CMA is following a clear and transparent process, engaging with a wide range of stakeholders and collecting detailed information from Microsoft. The investigation is set to conclude within nine months, with a decision expected by February 2027.