Synopsis
Britain's antitrust regulator will investigate Microsoft's dominance in business software. The Competition and Markets Authority will examine if bundling Windows, Word, Excel, Teams, and other products is uncompetitive. This probe will also look at AI integration and cloud market practices. The investigation aims to ensure UK organisations benefit from choice, innovation, and competitive prices.Listen to this article in summarized format
The Competition and Markets Authority said its "strategic market status" investigation, its fourth under powers granted last year, would examine whether the bundling of Windows, Word, Excel, Teams, Copilot and other products was uncompetitive.
A Microsoft spokesperson said the U.S. company was "committed to working quickly and constructively with the CMA to facilitate its review of the business software market". An SMS designation, which does not assume wrongdoing in itself, will also allow the CMA to intervene in the cloud market.
CMA Chief Executive Sarah Cardell said business software was a cornerstone of the British economy, with hundreds of thousands of customers relying on Microsoft's systems.
"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 organisations can benefit from choice, innovation and competitive prices," she said in a statement.
BUNDLING, AI AND CLOUD TO BE EXAMINED
Microsoft faces antitrust investigations globally, including in the European Union and United States, targeting its business software, cloud computing and AI partnerships.
The British probe will look at how AI competitors were able to integrate with Microsoft's business software, the CMA said.
The regulator has previously said Amazon and Microsoft's leading cloud computing positions raised concerns, with the latter singled out for its licensing practices.
Both companies agreed to lower some cloud fees in March, doing just enough to see off the threat of tougher action.
The CMA opted to investigate Microsoft's cloud licensing practices again as part of the SMS probe launched on Thursday.
The investigation will end by February, the CMA said.
