Britain investigates Microsoft over business software dominance
UK Antitrust Regulator Launches Probe into Microsoft’s Market Position
By Paul Sandle
LONDON, May 14 (Reuters) - Britain will investigate Microsoft's dominance in business software using its powers to oversee big tech, its antitrust regulator said on Thursday, which could lead to targeted interventions to encourage competition.
Details of the Investigation
The Competition and Markets Authority said its "strategic market status" investigation, its fourth under powers granted last year, would examine whether the bundling of Windows, Word, Excel, Teams, Copilot and other products was uncompetitive.
Microsoft’s Response
A Microsoft spokesperson said the U.S. company was "committed to working quickly and constructively with the CMA to facilitate its review of the business software market". An SMS designation, which does not assume wrongdoing in itself, will also allow the CMA to intervene in the cloud market.
Importance of Business Software to the UK Economy
CMA Chief Executive Sarah Cardell said business software was a cornerstone of the British economy, with hundreds of thousands of customers relying on Microsoft's systems.
Ensuring Competition and Innovation
"Our aim is to understand how these markets are developing, Microsoft's position within them and to consider what, if any, targeted action may be needed to ensure UK organisations can benefit from choice, innovation and competitive prices," she said in a statement.
Key Areas Under Scrutiny
BUNDLING, AI AND CLOUD TO BE EXAMINED
Global Antitrust Investigations
Microsoft faces antitrust investigations globally, including in the European Union and United States, targeting its business software, cloud computing and AI partnerships.
AI and Integration Concerns
The British probe will look at how AI competitors were able to integrate with Microsoft's business software, the CMA said.
Cloud Computing and Licensing Practices
The regulator has previously said Amazon and Microsoft's leading cloud computing positions raised concerns, with the latter singled out for its licensing practices.
Recent Developments in Cloud Fees
Both companies agreed to lower some cloud fees in March, doing just enough to see off the threat of tougher action.
Renewed Focus on Microsoft’s Cloud Licensing
The CMA opted to investigate Microsoft's cloud licensing practices again as part of the SMS probe launched on Thursday.
Timeline and Next Steps
The investigation will end by February, the CMA said.
(Reporting by Muvija M and Paul Sandle; editing by William James, Sarah Young and Alexander Smith)
