Microsoft products to be investigated by UK competition regulator

The competition regulator has launched an investigation into Microsoft over software used by hundreds of thousands of UK businesses and public sector organisations.

Software including Windows, Word, Excel, Teams and Copilot will be examined by the Competition and Markets Authority (CMA) to see if customers are prevented from switching, something which would weaken competition from rivals.

The CMA will assess where bundling of Microsoft products limits in interoperability, the ability of computer systems to work together and exchange information, and if default settings prevent users from switching to alternatives.

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It had heard that UK customers may not always be able to effectively combine software from Microsoft with other providers, limiting their access to the best products at the lowest prices.

Up for examination is how artificial intelligence (AI) competitors can integrate with Microsoft's business software, giving customers access to software across suppliers to best suit their needs.

In response, a Microsoft spokesperson said: "We are committed to working quickly and constructively with the CMA to facilitate its review of the business software market."

Why does it matter?

Across the world, there are 15 million users of the products, according to the CMA.

And the level of use means the products are important to the productivity of the UK economy.

The economy, and the UK as a whole, will benefit most when customers can access the best tools in the market, and mix and match software and AI services from a broad range of competing suppliers, the regulator added.

"It is therefore important that competition in business software is working well," it said.

What next?

The regulator wants to hear from businesses, rival tech companies and customers as part of the inquiry.

As part of the investigation, the watchdog will examine whether Microsoft has a so-called "strategic market status" (SMS), and whether it can use that position to limit customer choice.

If Microsoft is found to have this status, it would allow the CMA to impose new rules on the tech giant.

Other companies designated as having SMS include Google and Apple. This is for their roles in mobile ecosystems, and for Google in search.

It is the fourth SMS investigation opened by the CMA after legislation was introduced in January 2025.

The CMA's chief executive, Sarah Cardell, said: "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."

(c) Sky News 2026: Microsoft products to be investigated by UK competition regulator