United Kingdom Launches Investigation into Microsoft: Focus on Cloud Licenses and Enterprise Software
The Competition and Markets Authority (CMA) of the United Kingdom has announced the start of a new strategic investigation into Microsoft, focusing on the entire ecosystem of enterprise software. This initiative falls under the UK’s digital competition regime and will formally commence in May.
The authority aims to assess whether to grant Microsoft Strategic Market Status (SMS), a designation that would allow for more incisive interventions to correct any competitive distortions. At the center of the analysis are cloud licensing practices, which have already emerged as a critical element in previous investigations into the sector.
According to the CMA, Microsoft’s software licensing could limit competition in cloud services, creating barriers to entry or mobility for customers among different providers. This is particularly relevant considering the widespread adoption of the company’s solutions, including Windows, Office, Teams, and the AI Copilot platform, which are used daily by hundreds of thousands of organizations in the UK.
The authority emphasizes that granting SMS designation would not only address these critical issues but also ensure more balanced market conditions at a time when artificial intelligence is being rapidly integrated into productivity software.
Alongside the investigation into Microsoft, the CMA noted progress resulting from dialogue with Amazon and Microsoft itself. Both companies have initiated measures to improve interoperability between cloud platforms and reduce exit costs, which are the expenses associated with transferring data out of a cloud infrastructure.
These interventions aim to facilitate multi-cloud strategies for businesses and public administrations, reducing the technical and economic barriers to switching between different providers. However, the CMA believes that further steps are necessary to ensure real user choice.
The investigation is part of a broader context of transformation in the digital market. The increasing integration of artificial intelligence-based functionalities – including assistants and