Britain investigates Microsoft over business software dominance

Britain will investigate Microsoft's dominance in business software using its powers to oversee big tech, its antitrust regulator said on Thursday, which could lead to targeted interventions to encourage competition.

The Competition and Markets Authority said its "strategic market status" investigation, its fourth under powers granted last year, would examine whether ‌the bundling ⁠of Windows, ⁠Word, Excel, Teams, Copilot and other products was uncompetitive.

A Microsoft spokesperson said the U.S. ​company was "committed to working quickly and constructively with the CMA to facilitate its ​review of the business software market". An SMS designation, which does not assume wrongdoing in itself, will also allow the CMA to intervene in ​the cloud market.


CMA Chief Executive Sarah Cardell ⁠said business software ‌was a cornerstone of the British economy, with ​hundreds of ​thousands of customers relying on Microsoft's systems.

"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," she said in a statement.

BUNDLING, AI AND CLOUD TO BE EXAMINED

Microsoft faces antitrust investigations globally, including in the European Union and United States, targeting its business software, cloud computing and ‌AI partnerships.

The British probe will look at how AI competitors were able to integrate with Microsoft's business software, the ​CMA said.

The regulator ​has previously said ⁠Amazon and Microsoft's leading cloud computing positions raised concerns, with the latter singled out for its licensing practices.

Both companies agreed to lower some cloud fees ​in March, doing just enough to see off the threat of tougher action.

The CMA opted to investigate Microsoft's cloud licensing practices again as part of the SMS probe launched on Thursday.

The investigation will end by February, the CMA said.