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The UK Competition and Markets Authority (CMA) opened a strategic market status (SMS) investigation into Microsoft’s business-software ecosystem on 14 May 2026. It has not yet decided whether to designate Microsoft. Amazon Web Services (AWS) was not included in this business-software case, but it remains part of the CMA’s separate work on cloud-service concerns, including egress fees and interoperability.
What the CMA is investigating
The CMA is examining Microsoft’s position across a business-software ecosystem used by more than 15 million commercial users, according to the regulator’s 14 May 2026 announcement. The investigation covers productivity software, personal computer and server operating systems, database management systems, and security software.
The regulator is assessing whether Microsoft’s position could limit choice for UK organisations. Its stated questions include whether bundling, default settings or limits on interoperability affect the ability of organisations to switch products or constrain rival providers. The CMA will also examine how AI competitors can integrate with Microsoft software so businesses can use AI tools from multiple providers.
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1Fix the driver behind crashes, sound loss and screen glitches2Repair Windows errors before they cause bigger problems3Scan for outdated or missing drivers - takes under a minuteSarah Cardell, the CMA’s chief executive, said the aim was to understand how the markets are developing and whether targeted action may be needed so UK organisations can benefit from choice, innovation and competitive prices. The investigation is an evidence-gathering process, not a finding that Microsoft has broken the law.
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Has Microsoft been designated with strategic market status?
No. The CMA’s case page describes an open investigation into whether to designate Microsoft under Part 1 of the Digital Markets, Competition and Consumers Act 2024. The regulator has not announced a designation decision. If it designates Microsoft, the CMA could consider targeted, proportionate interventions, subject to the applicable legal tests; opening the investigation does not predetermine that outcome.
Is AWS off the hook?
AWS was not named in the new investigation into Microsoft’s business software. That case is about Microsoft’s position in software used by businesses, not a new examination of AWS.
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But AWS is not thereby cleared of the CMA’s separate cloud concerns. In its cloud-services market investigation, which closed on 31 July 2025, the CMA found significant market power held by both Amazon and Microsoft and identified issues including cloud egress fees, interoperability barriers and Microsoft software licensing. It recommended prioritising consideration of SMS investigations into Microsoft and AWS in the cloud-services market.
In March 2026, the CMA announced that it would pursue the Microsoft business-software SMS investigation while continuing engagement with both Microsoft and Amazon on cloud egress fees and interoperability. The CMA said both companies had set out actions, but it would keep assessing whether those steps benefit UK customers and seek views on multi-homing and switching. It planned a Board review of cloud progress six months after that announcement.
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| Comparison | Microsoft business-software case | Cloud-services work involving Microsoft and AWS |
|---|---|---|
| Subject | Microsoft’s business-software ecosystem | Public cloud services and issues including egress fees and interoperability |
| Process | Open SMS investigation | Continued engagement following the CMA’s closed cloud-services market investigation |
| Decision status | No SMS designation decision announced | The market investigation made findings and recommended considering SMS investigations into Microsoft and AWS |
| Announced next step | Proposed decision, consultation and a final decision under the published indicative timetable | CMA assessment of the firms’ cloud-related actions and review of progress |
The distinction is procedural and specific: AWS is outside the new Microsoft business-software investigation, while remaining in the CMA’s separate cloud-services engagement.
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The CMA’s case page labels its timetable indicative and subject to change. The page was last updated on 23 June 2026; a check on 28 September 2026 found no later update on that page, so the dates below are the published schedule, not confirmation that each milestone has happened.
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| Published stage | Indicative timing |
|---|---|
| Further evidence gathering | Through September 2026 |
| Prepare proposed decision | September–October 2026 |
| Consult on proposed decision | October 2026, with consultation closing in November |
| Final decision report and any SMS decision notice | February 2027; statutory deadline 13 February 2027 |
Until the CMA publishes its decision, whether Microsoft will receive SMS designation remains unresolved.
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