Britain’s Competition and Markets Authority said on March 31, 2026 that it will open a new investigation into Microsoft’s business software ecosystem, with a particular focus on how Microsoft licenses products such as Windows Server, Microsoft 365, Word, Excel, and Teams for cloud use. The core concern is that Microsoft’s licensing terms may make it harder or more expensive for customers to run these tools on rival cloud platforms, which could weaken competition and further reinforce Microsoft’s position in enterprise software and cloud services.
This matters because the CMA had already found in an earlier cloud market review that Microsoft and Amazon hold very strong positions in the UK cloud market, and that Microsoft’s licensing practices were one of the major issues distorting competition. The new step could lead to Microsoft being designated with “strategic market status,” which would give the regulator stronger powers to impose targeted remedies. The CMA also said Microsoft and Amazon have recently made some changes, including moves around data portability and multicloud flexibility, but regulators still see unresolved concerns.
Author: Jamie Rina