CMA panel says Microsoft’s software rules hurting cloud competitors

The U.K.’s CMA has found that Microsoft’s (MSFT) software licensing terms harm competition in the cloud market, and may open a probe into Microsoft and Amazon (AMZN) in 2026. The finding by an independent panel of the Competition and Markets Authority said on Thursday that the U.K. cloud market “is not working well” and recommended the agency impose conduct requirements on Microsoft and Amazon to boost competition. The CMA’s panel found that the cloud market was highly concentrated, with Amazon Web Services and Microsoft’s Azure each commanding up to 40% of UK customer spending, with Google (GOOGL) trailing in third place. “The CMA has said that it will keep under review possible options for further SMS designation investigations, and it anticipates that options will be considered by the CMA Board in early 2026. We expect that our findings and recommendations will be taken into account as part of its decision.”