UK regulator proposes granting Microsoft strategic market status — Channel NewsAsia
The UK Competition and Markets Authority has proposed granting Microsoft strategic market status in the field of business software. Such a move could pave the way for intervention in the company’s product bundling practices, including Excel, Teams and the Copilot AI assistant, Channel NewsAsia reports.
Review of software bundles
The regulator launched an investigation in May to determine whether Microsoft’s bundling of its business software products restricts competition. According to its data, around 20 million people in the UK use these products every month.
The authority said that Microsoft holds strong positions in key areas of digital activity, including operating systems for personal computers and productivity software suites. In the regulator’s view, the company’s position in the business software market strengthens the barriers customers face when switching to other providers.
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Microsoft’s position and next steps
A Microsoft spokesperson said that the company does not share the regulator’s assessment in its preliminary decision. According to the spokesperson, all Microsoft products, including Copilot, are open and compatible with other services, allowing customers to use competing solutions.
The regulator is also assessing whether customers can freely choose artificial intelligence tools, whether competitors can compete with Copilot, and whether bundling security products narrows choice. It is separately examining the impact of Microsoft’s licensing practices on customers’ cloud service deployment options.
The authority will hold consultations on the proposed status and plans to make a final decision by February. If the proposal is approved, Microsoft will become the third company subject to the UK’s new digital markets powers: Google received this status for online search and mobile platforms, while Apple received it for mobile platforms in October 2025.
