The Competition and Markets Authority has opened a consultation on whether to designate Microsoft with strategic market status for its portfolio of business software. The probe covers products such as Word, Excel, Outlook, PowerPoint and Teams, and also looks at security, server and operating systems. The CMA invites comments by 13 November and plans a final decision by 13 February 2027. The regulator says it is considering further investigations in related areas.
The CMA finds Microsoft holds a strong position in each of the five areas it examined, including personal computer operating systems, productivity suites, security software, server operating systems and relational database systems. It says customers see Microsoft as an integrated stack and face barriers when switching providers. The watchdog highlights discounted bundle pricing and technical integration as factors that reduce firms' willingness to adopt alternatives and that can duplicate licensing costs.
The CMA lists possible interventions such as preventing design choices that limit use of other providers, curbing bundling that restricts competition and stopping market power being used to distort adjacent markets like cloud services. The regulator also says it will look at whether customers can freely choose AI tools and whether alternatives can compete with Copilot. Microsoft said it disagrees with the CMA's view and that its products are 'open and interoperable'.
What it means for your business
Check your Microsoft licensing and bundling arrangements and note any costs tied to Windows Server or SQL Server running off Microsoft cloud services. Consider whether technical integration or bundle discounts lock you into the Microsoft stack and whether multi-vendor or open alternatives could reduce risk. If your business is affected, consider responding to the CMA consultation by 13 November and monitor the CMA's final position due 13 February 2027.
This brief was written automatically from the source above and summarises it. It is not legal, tax or financial advice.