Competition watchdog mulls tightening oversight of Microsoft

(Sharecast News) - The UK's competition watchdog is considering ramping up regulatory oversight of tech giant Microsoft, it confirmed on Friday.

The Competition and Markets Authority is proposing designating the US firm with strategic market status (SMS) for its business software ecosystem - which includes Word, Excel, Outlook, PowerPoint, Teams and artificial intelligence assistant Copilot - and has launched a consultation.

In particular, the body wants to assess how Microsoft bundles its software as well as making it easier for developers to integrate their products.

SMS does not imply any wrongdoing, but instead acknowledges that a company has substantial, entrenched power in a particular market. Should the CMA opt to designate Microsoft, it will be able to consider using "targeted and proportionate interventions" to support competition if deemed necessary.

Sarah Cardell, CMA chief executive, said: "Business software and cloud services underpin workplaces across the UK, from small firms to vital public services. The evidence shows Microsoft has a long-standing and significant presence in the UK's business software market.

"Organisations would be able to choose the products that work best for them, switch provider when they want to and combine services from different suppliers.

"We want to ensure businesses have the freedom to choose how they use Microsoft's products alongside alternatives."

In a statement, Microsoft said it disagreed with the CMA's stance: "All our products, including Copilot, are open and interoperable, giving customers the ability to use them alongside competing services and choose solutions that work best for them at attractive prices."

Following the consultation, the CMA - which has been investigating Microsoft since May - has until February 2027 to make its final decision. According to Reuters, around 20m people a month in Britain use Microsoft software.