Microsoft set to face another major UK probe - this time over cloud and software licensing, and if it should get strategic market status

Date:
Wed, 01 Apr 2026 10:03:46 +0000

Description:
After reaching an agreement over cloud interoperability, the CMA is now targeting Microsoft's software dominance in the UK.

FULL STORY ======================================================================Copy link Facebook X Whatsapp Reddit Pinterest Flipboard Threads Email Share this article 0 Join the conversation Follow us Add us as a preferred source on Google Newsletter Tech Radar Pro Are you a pro? Subscribe to our newsletter Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed! Become a Member in Seconds Unlock instant access to exclusive member features. Contact me with news and offers from other Future brands Receive email from us on behalf of our trusted partners or sponsors By submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over. You are
now subscribed Your newsletter sign-up was successful Join the club Get full access to premium articles, exclusive features and a growing list of member rewards. Explore An account already exists for this email address, please log in. Subscribe to our newsletter CMA launches Strategic Market Status investigation into Microsoft software, could take nine months UK regulators are worried that the company is bundling its software together for an unfair advantage Microsoft has already reached an agreement with the CMA over cloud interoperability Britain's Competition and Markets Authority (CMA) has announced it will begin a Strategic Market Status (SMS) investigation into Microsoft 's software in May 2026, likely covering the Windows operating system , Office productivity software and Copilot AI assistant.

It's Copilot more than the others that's likely prompted this action, with
the CMA looking to ensure a level playing field by preventing Microsoft from gaining an unfair advantage. As ever, the CMA is focusing on interoperability here, looking for a solution to let customers mix and match AI and productivity tools across multiple providers. Article continues below You may like Microsoft reportedly blocks 'Microslop' posts on Discord, risking
another AI backlash Microsoft Office has been rebranded to Microsoft 365 Copilot, or has it? Microsoft just released an update I actually want to install and you should too Microsoft faces another antimonopoly
investigation On the cloud front, Microsoft has already promised to improve interoperability and remove cloud egress fees to make it easier for UK customers to switch or use multi-cloud setups, but now the CMA is honing in
on the company's productivity software.

"Weve seen real progress through our engagement with Microsoft and Amazon to drive meaningful improvements on egress fees and interoperability and we expect more action from them over the coming months," Chief Executive Sarah Cardell wrote.

Mark Boost, CEO of UK-based cloud provider Civo, praised the probe's intentions but criticized it for "not provid[ing] adequate solutions to solve the serious issues surrounding the dominance of these key foreign-based hyperscalers."

The CMA's Cardell envisions a process whereby the body can deliver fast and proportionate impact across the cloud and software markets to save customers money in real-time, but with the SMS likely to take up to nine months, we're unlikely to see any immediate impact. Are you a pro? Subscribe to our newsletter Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed! Contact me
with news and offers from other Future brands Receive email from us on behalf of our trusted partners or sponsors By submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over.

Microsoft says it's already abolished egress fees globally for customers switching providers, offering them a free switching window of 180 days (up from 60) as well as free data transfers.

Company President Brad Smith also explained that Microsoft agrees with the principles of moving workloads freely, running across multiple clouds and preventing vendor lock-in.

"We are committed to working quickly and constructively to address these issues, including by providing all the information the CMA needs to move forward with its reviews," Smith shared.

Smith also drew attention to Google a company that's already submitted complaints about Microsoft and Amazon's dominance. Google Cloud's revenue
grew 48% last quarter (compared with 18% overall company revenue growth), while AWS and Microsoft Cloud's revenue grew by a far smaller 24-26% in the same quarter. Follow TechRadar on Google News and add us as a preferred
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Link to news story: https://www.techradar.com/pro/microsoft-set-to-face-another-major-uk-probe-thi s-time-over-cloud-and-software-licensing-and-if-it-should-get-strategic-market -status


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