The U.K.’s Competition and Markets Authority said Tuesday it will launch a strategic market status (SMS) investigation into Microsoft Corporation’s (NASDAQ:MSFT) business software ecosystem, as part of a broader push to increase competition in cloud services and workplace software.
The watchdog said the move comes at a pivotal moment as artificial intelligence reshapes productivity tools. Hundreds of thousands of U.K. businesses and public sector bodies rely on Microsoft products such as Windows, Word, Excel and Teams, with newer AI tools like Copilot gaining traction.
An SMS designation would allow the CMA to address concerns that Microsoft’s software licensing practices may be limiting competition in cloud services, while helping ensure a level playing field as AI adoption accelerates.
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