The UK's competition watchdog has launched a fourth major antitrust investigation under its new digital market powers, targeting Microsoft's software ecosystem used by 15 million people globally.
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UK Regulator Probes Microsoft's Dominance in Business Software
The UK's Competition and Markets Authority (CMA) on Thursday opened an investigation into Microsoft Corp.'s business software, including its Office suite and Teams platform, to determine if the tech giant's practices are stifling competition and limiting choice for hundreds of thousands of British businesses.
"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," Sarah Cardell, the CMA's chief executive, said in a statement.
The probe will scrutinize whether Microsoft's product bundling, limits on interoperability with rival software, and default settings prevent customers from switching to alternatives. The CMA will also examine how artificial intelligence competitors can integrate with Microsoft’s ecosystem, a key concern as AI becomes more integrated into business software. The investigation follows concerns that UK customers may not be able to effectively combine software from Microsoft with other providers, limiting their access to the best products at the lowest prices.
If the CMA designates Microsoft with "strategic market status," it could impose new conduct requirements on the company, similar to measures faced by Google and Apple for their roles in mobile ecosystems. The outcome of this investigation could have significant implications for Microsoft's business practices in the UK and potentially set a precedent for other regulators globally. A Microsoft spokesperson said the company is "committed to working quickly and constructively with the CMA to facilitate its review."
A Familiar Battleground
This investigation is the latest in a series of antitrust challenges for Microsoft, which has faced scrutiny from regulators in the US and Europe for decades. The company's bundling of its Teams video conferencing software with its Office suite has been a particular point of contention, with rivals arguing that it gives Microsoft an unfair advantage. While Microsoft has made some concessions, such as offering a version of Office without Teams, regulators remain concerned about the company's market power.
The AI Frontier
The inclusion of AI in the investigation highlights the growing importance of this technology and the potential for dominant firms to extend their power into new markets. The CMA's focus on AI integration signals that it is looking ahead to ensure that the next generation of software is not dominated by a few large players. The probe will likely examine whether Microsoft is using its control over its software ecosystem to favor its own AI products, such as Copilot, over those of its rivals.
This article is for informational purposes only and does not constitute investment advice.
