The UK Competition and Markets Authority (CMA) proposes to designate Microsoft with strategic market status for its business software ecosystem. The proposal covers five areas: PC operating systems, productivity suites, security software, server operating systems and database management systems. The CMA lists possible interventions on choice of AI tools, security bundling, cloud licensing and interoperability. The consultation runs until 13 November 2026, and a final decision is expected by 13 February 2027.

What it means: The CMA proposal is one of the most significant competition moves against Microsoft in Europe in years. Designation under the UK's new digital markets law would let the authority impose specific conduct requirements, such as limits on bundling or interoperability obligations. The reference to AI tool choice shows regulators worry that building Copilot into Windows and Microsoft 365 could shut out rivals. Cloud licensing is also a long-standing complaint from European providers, who say running Microsoft software on other clouds costs more. The decision does not apply in the EU, where Microsoft is already a DMA gatekeeper for Windows and LinkedIn and has given commitments on Teams. Remedies imposed in the UK, however, are often applied more widely. For Greek businesses and public bodies that rely heavily on Microsoft products, the development could eventually mean more flexible licensing and easier use of alternative tools, especially alongside the debate on digital sovereignty.

Read the original on GOV.UK (CMA)

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