Microsoft Corporation (MSFT), the tech giant behind Windows, Office, Azure, Teams, and Copilot, is facing a new antitrust probe in the U.K. over its role in the business software market.
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Britain’s Competition and Markets Authority said Thursday that it will investigate whether Microsoft’s broad software bundle is hurting rivals. The review will focus on products such as Windows, Word, Excel, Teams, Copilot, and other tools that many firms use each day.
The probe could lead to more rules for Microsoft if the CMA finds that the company holds “strategic market status” in the sector. That label would give the regulator more power to act if it sees risks to fair choice, price, or access.
“Our aim is to understand how these markets are developing, Microsoft’s position within them, and to consider what, if any, targeted action may be needed,” CMA Chief Executive Sarah Cardell said.
Meanwhile, MSFT shares dropped slightly on Wednesday, closing at $405.21.
AI and Cloud Are Also in Focus
The review will also look at how AI rivals can plug into Microsoft’s business tools. This is key, since Copilot is now built into many parts of Microsoft’s software suite, giving the company a strong base as AI spreads through the workplace.
In addition, the CMA said the probe could touch the cloud market. The regulator has raised concerns before that Microsoft’s software license terms may make it harder for cloud rivals to compete.
For investors, this does not point to a near-term hit to Microsoft’s core growth story. Still, it adds another layer of risk to the company’s software, cloud, and AI push. Microsoft said it will work with the CMA “quickly and constructively” during the review.
Is Microsoft Stock a Buy or Sell?
Turning to the Street, Microsoft Corporation has a Strong Buy consensus. Of the 22 ratings, 20 analysts rate the stock a Buy, while two rate it a Hold. The average MSFT stock price target is $555.07, implying a 36.98% upside from the current price.
