UK competition watchdog proposes strategic market status for Microsoft
The UK's competition watchdog wants to give Microsoft a special status in its business software, The Register and Reuters reported. Reuters said that could bring rules on how Microsoft bundles tools like Teams and Copilot. Microsoft said it does not share the watchdog's views, and a final call is due by February.
Britain's Competition and Markets Authority has proposed designating Microsoft with "strategic market status" in business software, The Register and Reuters reported Friday. The Register reported that the designation would let the regulator intervene to level the playing field.
The proposal follows an investigation the CMA opened in May into Microsoft's business software, including Word, Excel, Outlook, PowerPoint and Teams, along with its security, server and operating system products, The Register reported. Reuters reported that Microsoft's business software products have around 20 million monthly users across the UK.
The regulator found that Microsoft holds a strong position in areas including personal computer operating systems and productivity software suites, and that customers face barriers when switching, according to The Register and Reuters. The CMA says discounted bundles make customers less likely to adopt rival products, because doing so would duplicate licensing costs, The Register reported. The regulator stressed that meeting the criteria would not imply wrongdoing by Microsoft, according to The Register.
"Organizations should be able to choose the products that work best for them, switch provider when they want to and combine services from different suppliers," CMA chief executive Sarah Cardell said, according to The Register.
A Microsoft spokesperson said the company does not share the CMA's views in its proposed decision, The Register and Reuters reported. "All our products - including Copilot - are open and interoperable, giving customers the ability to use them alongside competing services," the spokesperson said.
The Open Cloud Coalition, which counts Google as a member, and the Browser Choice Alliance welcomed the proposal, The Register reported. The CMA is also looking at whether customers can freely choose AI tools and whether rivals can compete with Copilot, according to The Register and Reuters.
Comments are due by November 13, and the CMA will make a final decision by February 13, 2027, The Register reported. If the proposal goes through, Microsoft would be the third company under Britain's new digital market powers, after Google and Apple received the status in October 2025, Reuters reported.
What we know: The CMA has proposed strategic market status for Microsoft's business software, and Microsoft disagrees with the regulator's views.
What we don't: What specific rules the CMA might impose if it confirms the designation.
Where outlets agree The Register and Reuters report that Britain's Competition and Markets Authority proposed designating Microsoft with strategic market status in business software.
Where they differ The outlets cited here report the same key facts so far.