CMA consults on special oversight of Microsoft’s business software
The UK Competition and Markets Authority (CMA) is consulting on whether to designate Microsoft as having strategic market status in business software. That designation would give the watchdog powers to intervene to improve competition, though it would not imply that Microsoft had broken the law.
The CMA says Microsoft has a strong position across five areas, including operating systems, productivity software, security, servers and databases, and that barriers to switching can limit customer choice. It points to the appeal of an integrated suite and bundle discounts, which can make alternatives costly to adopt. Responses are due by 13 November, with a final decision expected by 13 February 2027; possible measures could address product design, bundling and effects on adjacent markets such as cloud services.
- The CMA is consulting on giving Microsoft strategic market status.
- It says switching barriers and bundled software can restrict competition.
- The watchdog expects to decide by 13 February 2027.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Special oversight could help keep business software markets open where Microsoft’s broad product range, bundle discounts and switching barriers make it difficult for customers to choose alternatives. The CMA could address specific practices before they entrench Microsoft’s position further, while the designation itself would not mean the company had broken the law.
The case against
Microsoft’s integrated products and discounted bundles can offer businesses convenience, compatibility and lower costs, reflecting genuine customer value rather than a competition problem. Giving the CMA broad powers to change product design or bundling could weaken those benefits, create uncertainty for investment and innovation, and impose costs without clear evidence that intervention would improve outcomes.
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Originally published by The Register as “British watchdog seeks tougher terms around Microsoft’s dominance of business software”.