The UK’s competition watchdog is once again scrutinising Competition and Markets Authority, as it prepares to investigate Microsoft over its position in the cloud computing market.
The regulator has announced plans to examine whether Microsoft should be designated with “strategic market status” (SMS), a classification that would grant the authority broader powers to intervene. The inquiry, due to commence in May, reflects mounting concern that the firm may be restricting competition through its suite of widely used products, including Word and Excel, the Teams messaging platform, its AI assistant Copilot, and the Windows operating system.
According to the CMA, such integration across Microsoft’s ecosystem could create barriers for rival providers in the cloud services sector, reinforcing the company’s already significant market presence.
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The move follows ongoing regulatory efforts to tighten oversight of the UK’s cloud infrastructure market. In a separate development, the CMA has been progressing its review of both Microsoft and Amazon, initially launched in 2025. That inquiry sought to address concerns around competition and customer flexibility within the sector.
As part of that process, the two firms have agreed to measures aimed at improving interoperability between cloud platforms and reducing so-called “egress fees” — charges incurred when transferring data between providers. The CMA said these steps should lower costs and simplify the process for UK businesses using multiple cloud services.
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Microsoft has frequently found itself under the regulator’s scrutiny in recent years. The company faced investigation in 2023 over its partnership with OpenAI, and again in 2024 following its recruitment of key personnel from Inflection AI. With the latest probe, the CMA appears determined to maintain pressure on major technology firms as it seeks to ensure a more competitive digital marketplace in the UK.
