UK regulator proposes strategic market status for Microsoft software

Britain's Competition and Markets Authority has proposed designating Microsoft with strategic market status in business software, and is consulting before a final decision due by February 2027.

Why it matters: Designation would let the regulator impose targeted requirements on how Microsoft bundles and integrates products used by more than a million UK businesses and public bodies, including around Copilot and cloud licensing.

Data as of Friday, October 16, 2026, 05:41 ET. Single sourced to the CMA news release, opened and read in full. The release is the primary source for the proposed decision itself; the findings are provisional and subject to consultation, hence grade C for a developing item.

The Competition and Markets Authority said it is proposing to designate Microsoft with strategic market status in its business software ecosystem, covering products including Word, Excel, Teams and Copilot, and published a roadmap of areas it may examine for possible interventions. Those areas include software bundling, choice of AI tools alongside Copilot, security product integration and the cloud on which customers deploy Microsoft licences.

The regulator said its provisional findings show Microsoft holding a strong position across five areas it investigated, with switching barriers limiting customer choice. The proposal is open for consultation, with a final designation decision required by a February 2027 statutory deadline, and the CMA said designation does not assume wrongdoing.

UK regulator proposes strategic market status for Microsoft software

Sources