CMA Investigates Microsoft's Market Status

The UK's Competition and Markets Authority (CMA) has announced it is turning its attention back to Microsoft. The regulator is launching an investigation to determine if the tech giant should be assigned "strategic market status" (SMS).

This designation would grant the CMA new powers to take regulatory action against the company. The investigation is scheduled to begin in May.

Concerns Over Cloud Competition

The CMA has expressed "a major concern" regarding Microsoft's potential to limit competition within the cloud computing sector. The regulator is specifically examining how the company utilizes its suite of productivity software and services, including:

  • Word and Excel
  • Teams
  • Copilot
  • Windows

Previous Regulatory Actions

This is not the first time the CMA has scrutinized Microsoft's business practices. In 2023, the regulator initiated an investigation into Microsoft and Amazon regarding their control over the domestic cloud services market.

Following that inquiry, both companies agreed to a plan addressing egress fees and cloud service interoperability. According to the CMA, these changes are designed to reduce costs and technical burdens for UK customers who utilize multiple cloud providers.