British watchdog seeks tougher terms around Microsoft's dominance of business software

The UK's Competition and Markets Authority (CMA) is pushing for Microsoft to receive strategic market status (SMS) in the realm of business software, aiming to address concerns over its dominance and potential stifling of competition. The regulator is exploring this designation following an investigation into Microsoft's software portfolio, which includes widely-used applications like Word, Excel, Outlook, PowerPoint, and Teams, as well as security, server, and operating systems.

The CMA is seeking public input on the matter, with comments due by November 13, and a final decision expected by February 13, 2027. The organization argues that Microsoft holds a dominant position in several areas of business software, making it challenging for customers to switch providers and for alternative software developers to enter the market.

While the CMA believes the criteria for SMS designation would not imply any wrongdoing on Microsoft's part, it outlines potential interventions, such as ensuring technical designs do not hinder the use of other providers and preventing the company from leveraging its market power in business software to distort competition in related fields like cloud services.

Microsoft maintains that its products are open and interoperable, giving customers the freedom to use them alongside competing services and choose solutions that best meet their needs at competitive prices.