The UK competition watchdog wants special powers over Microsoft's Office, Teams and Copilot, used by 20 million Britons a month. Fair competition, or meddling?
The CMA has proposed giving Microsoft "strategic market status" in business software, which would let it set rules on things like bundling, cloud licensing and how rivals compete with Copilot. Microsoft says its products are already open and interoperable. A final decision is due by 13 February 2027.
What happened
On 16 October the Competition and Markets Authority proposed designating Microsoft with strategic market status in its business software ecosystem, covering Word, Excel, Outlook, PowerPoint, Teams, Copilot and its security, server and operating system products. The CMA says these are used by over a million UK businesses and public bodies and around 20 million people a month, and it provisionally found Microsoft strong in five markets. Its roadmap of possible rules covers AI choice, security bundling and cloud licensing. Comments close on 13 November.
Why people disagree
Supporters, including a browser makers' group and a cloud coalition whose members include Google, say bundling and licensing terms make switching costly, so rivals can't compete on merit and adding a rival can mean paying for overlapping licences. Sceptics say businesses pick Microsoft's integrated tools because they work well together and regulators risk second-guessing product design; Microsoft says its products are already open and interoperable.
What's still unclear
The CMA stresses the status doesn't assume wrongdoing, and no specific rules have been set. Whether it confirms the designation in February, what it would require of Microsoft, and whether businesses would actually switch are all open.
Sources
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