UK Regulator Moves to Tighten Oversight of Microsoft’s Business Software

The UK’s Competition and Markets Authority (CMA) has proposed designating Microsoft as having “strategic market status” in business software, potentially paving the way for stricter rules on how the company bundles products such as Excel, Teams and its Copilot AI assistant.

The regulator said Microsoft holds a strong position in productivity software and computer operating systems, with barriers to switching making it difficult for customers to move to competing services. Its investigation is also examining AI tool choice, security software bundling and licensing practices affecting cloud deployment.

Microsoft disagreed with the proposed designation, stating that its products are open and interoperable with competing services. The CMA will invite stakeholder feedback before making a final decision by February.

If approved, Microsoft would become the third company subject to the UK’s digital market powers, following Google and Apple, which received similar designations in October 2025. The development highlights growing regulatory scrutiny of technology companies’ market power, product bundling and competition in digital and AI services.