UK Proposes Designating Microsoft with Strategic Market Status in Business Software Ecosystem

On October 16, the UK Competition and Markets Authority (CMA) proposed designating Microsoft as having Strategic Market Status in its business software ecosystem and opened a consultation, with feedback due by November 13. The CMA said Microsoft holds strong market positions in five areas: personal computer operating systems, office software, security software, server operating systems, and relational database management systems. It said business practices such as user switching costs and product bundling may restrict competitors' growth. The CMA plans to further investigate the competitive landscape between Microsoft Copilot and other AI tools, the way security products are bundled, and the relationship between software licensing and cloud service choices. A final decision is expected to be published in February 2027. The CMA stressed that a Strategic Market Status designation does not mean a company has broken the law, and that possible follow-up measures aim to promote competition and expand customer choice.