Microsoft faces UK regulatory decision by February 2027

• Britain's Competition and Markets Authority proposed giving Microsoft strategic market status in business software, potentially allowing new restrictions on product bundling.
• The investigation covers software used by around 20 million people monthly in the UK, including Microsoft 365, Teams and Copilot.
• Microsoft disputes the regulator's preliminary findings, while the CMA plans to decide on the designation by February 13, 2027.

Microsoft (NASDAQ:MSFT) faces potential UK regulatory restrictions after the Competition and Markets Authority proposed strategic market status for its business software ecosystem on October 16, 2026.

The proposal follows a May investigation into Microsoft's software bundling practices, with approximately 20 million monthly UK users across products including Excel, Teams and Copilot.

"All our products — including Copilot — are open and interoperable, giving customers the ability to use them alongside competing services," said a Microsoft spokesperson.

The CMA is examining whether Microsoft's AI and security software bundles limit customer choice, alongside licensing practices affecting cloud services and barriers to switching providers.

The regulator will accept consultation responses until November 13 before making a final designation decision by February 13, 2027.

Microsoft provides operating systems, productivity software, cloud infrastructure and AI services, with the CMA identifying switching barriers and its established market position as potential concerns.

Google and Apple received UK strategic market status designations in October 2025, while the CMA subsequently introduced requirements affecting Google's search services and publishers' content use in AI features.