Key facts
- Microsoft's business software has about 20 million monthly users in the UK.
- The CMA will make a final decision on the designation by February.
Britain's competition watchdog, the Competition and Markets Authority (CMA), proposed on Friday designating Microsoft with "strategic market status" in business software. This designation could lead to interventions regarding how Microsoft bundles its products, including Excel, Teams, and its Copilot AI assistant. The CMA had launched an investigation in May into whether Microsoft's bundling practices were uncompetitive, noting that the company holds a strong position in PC operating systems and productivity software, with barriers to switching for customers. Microsoft stated that its products are open and interoperable. The CMA is also examining competition for AI tools and the impact of Microsoft's security product bundling and licensing practices. A final decision on the designation is expected by February. Google and Apple have previously received similar designations in other digital markets.