The UK’s Competition and Markets Authority (CMA) will begin a strategic market status investigation into Microsoft this month. The inquiry will evaluate the bundling of Microsoft products, including Windows, Word, Excel, Teams, and Copilot, for potential antitrust issues.
According to Reuters, CMA Chief Executive Sarah Cardell stated the investigation aims to understand market developments and Microsoft’s competitive position in order to ensure UK organizations benefit from choice, innovation, and competitive pricing. Cardell highlighted that hundreds of thousands of UK residents use Microsoft’s business software, which underscores the significance of the review.
As part of the investigation, the CMA will also examine Microsoft’s cloud licensing practices. The inquiry is expected to conclude by February, at which point Microsoft could be designated a strategic market label.
We’ve launched a strategic market status investigation into Microsoft’s business software ecosystem and set out details of what the investigation will cover: https://t.co/ej7nuaJZkW pic.twitter.com/pDFMqWCdti
— Competition & Markets Authority (@CMAgovUK) May 14, 2026
Microsoft has expressed its commitment to cooperate with the CMA, indicating it will work swiftly and constructively to facilitate the review. A strategic market designation does not imply wrongdoing but will provide the CMA with greater flexibility for future interventions.
This marks the latest investigation of Microsoft by the CMA, following a prior inquiry in 2023 regarding the company’s relationship with OpenAI. Additionally, in 2024, the CMA explored whether Microsoft sought to circumvent merger scrutiny by hiring staff from AI company Inflection rather than acquiring the firm outright.
In the United States, Microsoft is facing legal scrutiny as the Federal Trade Commission (FTC) investigates significant investments made in OpenAI and the Inflection situation.
