Microsoft faces UK antitrust probe over business software practices

The UK has launched an antitrust investigation into Microsoft’s business software based on its dominance in the sector, marking its fourth major probe under newly expanded regulatory powers.

Under the newly launched probe by the Competition and Markets Authority (CMA), the authority will assess whether Microsoft software practices like bundling of Windows, Word, Excel, Teams, Copilot and other products are responsible for hampering the competition.

The investigation will analyze integration of operating systems, communication & AI and productivity tools.

If Microsoft is found to have “strategic market status (SMS)”, the CMA will have authority to implement targeted interventions.

The measures will be designed to prevent lock-in effects of bundled software, making sure that small competitors possess a fair shot at the market. It could also intervene in the cloud market.

CMA Chief Executive Sarah Cardell said ‌business ⁠software lies at the British economy, with hundreds of thousands of customers depending 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 on Thursday.

According to the CMA, the probe will be concluded by February 2027.

In response to the probe, Microsoft spokesperson said, “ We are committed to working quickly and constructively with the CMA to facilitate ⁠its ​review of the business software market.”