Overview
- The Competition and Markets Authority published provisional findings on Friday proposing to designate Microsoft with strategic market status in business software and opened a public consultation ahead of a final decision by February 2027.
- The CMA says Microsoft holds a strong position across five digital activities—PC operating systems, productivity suites, security software, server operating systems and relational databases—which creates measurable switching costs for users.
- The regulator set out an indicative roadmap for further evidence gathering focused on whether customers can choose AI tools beyond Copilot, whether security bundling limits choice, and whether licensing restricts which cloud providers can run Microsoft software.
- The CMA reported material voluntary steps from Microsoft and Amazon Web Services on cloud portability such as data‑centre links, removal of data transfer fees for switching, and new interoperability request mechanisms, but it said identity and access portability still needs work.
- Microsoft rejected the CMA’s characterisation of the market as non‑competitive, while the proposal—if confirmed—would make Microsoft the third firm to face Britain’s strategic market powers after Google and Apple were designated in 2025.