# UK Regulator Proposes Strategic Market Status for Microsoft Business Software

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/regulation/33521
Published: 2026-10-16T22:13:17.000Z
Updated: 2026-10-16T22:13:17.000Z
Section: Regulation

> The provisional proposal covers five product areas and could lead to later conduct requirements. The CMA is accepting responses through Nov. 13.

The U.K. Competition and Markets Authority (CMA) has proposed designating Microsoft’s business software ecosystem with strategic market status, a move that could allow tailored oversight of products used by more than 1 million UK organizations.

The proposal, published Oct. 16, is provisional. The CMA is accepting consultation responses until Nov. 13 at noon ET (1700 UTC) and must make a final decision by Feb. 13, 2027.

The review covers five areas: personal computer operating systems, productivity software suites, security software, server operating systems and relational database management systems. The CMA provisionally found that Microsoft has substantial and entrenched market power and strategic significance across the ecosystem.

Microsoft had more than 1 million organizational customers in the UK in 2025, out of 2.7 million UK businesses. Its business software has around 20 million monthly users in the country.

A designation would not establish wrongdoing or impose new obligations by itself. It could allow the regulator to consider tailored conduct requirements or pro-competition measures in separate proceedings, with further assessment needed before any specific intervention.

The CMA’s roadmap identifies cloud software licensing, AI features, Teams and security software as areas for further work. These are possible subjects for scrutiny; the proposal does not commit the regulator to a particular measure.

CMA Chief Executive Sarah Cardell described the goal conditionally: “If we do, our focus would be on promoting competition and giving businesses greater freedom to choose and combine products in business software.”

The investigation began May 14 under the UK’s Digital Markets, Competition and Consumers Act 2024. To grant strategic market status, the CMA must find both substantial and entrenched market power and a position of strategic significance. Consultation responses are due Nov. 13, ahead of the regulator’s February deadline.