UK Considers Granting Microsoft Strategic Market Status
The UK Competition and Markets Authority proposed granting Microsoft strategic market status in business software, citing switching barriers in operating systems.
The UK Competition and Markets Authority has proposed designating Microsoft as having "strategic market status" in business software.
The proposal covers personal computer operating systems, office software suites, security software, server operating systems, and relational databases.
The authority cited switching barriers between products, practices affecting customer choice regarding "Copilot" and artificial intelligence tools, bundling of security products, and cloud licensing terms.
Consultations on the proposal end on November 13, 2026, with a final decision expected by February 2027, and the new status could impose conduct obligations on Microsoft in the UK market.
What do these terms mean?
Strategic Market Status: A special designation in the UK for a major company with market power that could harm competition, imposing additional obligations on it.
Switching Barriers: Difficulties that prevent a user from moving from a product to a competitor, such as high cost or data transfer difficulty.
Cloud Licensing: Terms permitting the use of software on cloud computing services for a fee, specifying how and by whom it can be used.
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