UK's Competition Watchdog Opens Probe into Microsoft’s Business Software Ecosystem

The UK’s competition watchdog, Competition and Markets Authority (CMA), has officially opened investigation Microsoft’s biggest strengths. Here we are talking about Microsoft’s software ecosystem, which millions of businesses and consumers rely on every single day. The UK regulator now wants to investigate whether the company’s dominance across these products could limit competition and customer choice over time.

UK watchdog launches major investigation into Microsoft’s software ecosystem

In an official press release published today, the Competition and Markets Authority, officially confirmed that it has launched a “Strategic Market Status” investigation into Microsoft and its broader business software ecosystem. The investigation will reportedly assess how Microsoft’s position across workplace software impacts UK businesses, public services, and rival technology providers.

According to the CMA, more than 15 million commercial users in the UK rely on Microsoft’s ecosystem. The regulator says it has heard concerns that customers may struggle to combine Microsoft software with products from competing companies. Apparently, the watchdog is specifically looking into issues related to software bundling, default settings, interoperability restrictions, and how rival AI tools integrate with Microsoft’s products.

Speaking of AI, the CMA also appears to be concerned about how AI assistants and agentic AI systems may become locked into Microsoft’s ecosystem through products like Copilot, Teams, and Windows.

In a statement regarding the investigation, Sarah Cardell, Chief Executive of the CMA, said:

“Business software is a cornerstone of how the UK economy functions, from small businesses to major public services and infrastructure. Hundreds of thousands of customers in the UK rely on Microsoft’s systems, which is why it’s so important to ensure these services are delivering good outcomes. 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 to ensure UK organizations can benefit from choice, innovation, and competitive prices.”

Not to forget, this investigation could also reopen concerns linked to Microsoft’s cloud licensing practices, which regulators previously said weakens competition in cloud services. As for the “Strategic Market Status” investigation, the CMA says the final verdict can be expected by February 2027.