UK regulator proposes strategic market status for Microsoft business software

The UK Competition and Markets Authority proposed designating Microsoft as having strategic market status in business software and opened consultation on possible areas for intervention. Its provisional findings identify switching barriers and integration advantages that weaken competition across five areas of software activity. The regulator will investigate customer choice in AI tools, security product bundling and software licensing across cloud providers. It says Microsoft's business software serves over a million UK businesses and public sector organisations, with around 20 million monthly users. Designation could allow targeted conduct requirements or other competition interventions, subject to legal tests. The findings remain provisional, and designation would not establish wrongdoing.