The UK's competition regulator proposes “strategic market status” for Microsoft's business software, Copilot included, and will test whether rival AI tools can compete

On 16 October the Competition and Markets Authority (CMA) proposed designating Microsoft with strategic market status in its business software ecosystem, and opened a consultation before it decides. The designation is the main tool of the UK's digital markets regime. It does not presume wrongdoing, but it would let the CMA impose conduct requirements or pro-competition interventions.

The proposal covers Word, Excel, Outlook, PowerPoint, Teams and Copilot, along with Microsoft's security, server and operating-system products. The CMA says this software “is used by over a million businesses and public sector organisations across the UK, with around 20 million monthly users”.

On AI, the CMA will look at whether customers can choose the AI tools they want and “whether alternative AI providers have a level playing field to compete with Microsoft's Copilot”. It also plans to look at how Microsoft bundles its security products and how its licensing affects customers' choice of cloud. Comments are open until 5pm on 13 November 2026. A final decision is due by the February 2027 statutory deadline, with an update on cloud services in spring 2027.

“The evidence shows Microsoft has a long-standing and significant presence in the UK's business software market,” said Sarah Cardell, the CMA's chief executive.

• Confirmed The CMA proposes strategic market status for Microsoft's business software ecosystem, Copilot included, with a final decision by the February 2027 statutory deadline. UK Competition and Markets Authority
• Confirmed The CMA says the software is used by over a million UK businesses and public sector organisations, with around 20 million monthly users. UK Competition and Markets Authority
• Confirmed The consultation closes at 5pm on 13 November 2026. UK Competition and Markets Authority, consultation