CMA launches strategic market status probe into Microsoft’s business software

The UK’s Competition and Markets Authority has launched a strategic market status investigation into Microsoft’s (MSFT) business software ecosystem and set out details of what the investigation will cover. This is the fourth SMS investigation opened by the CMA since the UK’s digital markets competition regime came into force in January 2025. The CMA has heard that UK customers may not always be able to effectively combine software from Microsoft with that of other providers, limiting their ability to get access to the best products at the most competitive prices. The CMA’s investigation will examine whether Microsoft has SMS in business software and consider whether it can use that position to limit customer choice. It will assess whether bundling of products, limits in interoperability or default settings can prevent customers switching and weaken the competitive constraints Microsoft faces from rivals. This includes looking at how AI competitors are able to integrate with Microsoft’s business software, giving customers access to AI software across suppliers to best suit their needs. The investigation will examine Microsoft’s provision of a range of business software products used by UK organizations, including productivity software, personal computer and server operating systems, database management systems and security software.