U.K. Competition Watchdog Homes in on Microsoft's Business Software Ecosystem In Cloud Probe — 2nd Update

By Edith Hancock

The U.K.'s competition watchdog said it would investigate Microsoft's position in the business software ecosystem as it wields new powers under the country's digital competition rulebook.

The Competition and Markets Authority said Tuesday that it would kick off its probe in May due to concerns about Microsoft's position in business software, particularly with productivity software, operating systems, database management and related security services.

The Microsoft investigation comes as it and Amazon Web Services offered commitments to the regulator linked to an earlier probe on their positions in the cloud services segment. The regulator was originally checking whether the companies should receive a label known as strategic market status under the Digital Markets, Competition and Consumers Act. That designation gives the CMA powers to impose conduct requirements on companies linked to their business practices.

"We're using the regime in a flexible, pragmatic way to deliver real impact, as quickly as possible, for U.K. customers," Sarah Cardell, the CMA's chief executive, said.

The companies offered commitments to the regulator linked to how they handle data transfer fees and interoperability.

Amazon said in a statement online that it has worked closely with the CMA as it examined competition in cloud services. "We welcomed the opportunity to show that we are delivering competition, innovation and value for U.K. customers and the broader U.K. innovation economy," it said.

"We recognize that the CMA will continue to review and assess additional issues relating to our products and services, including in the business software market," Brad Smith, Microsoft's president, said in a statement on Tuesday.

"We are committed to working quickly and constructively to address these issues, including by providing all the information the CMA needs to move forward with its reviews," Smith added.

It is the latest step the CMA has taken to enforce the DMCC act, a relatively new law designed to level the playing field in the digital economy and oblige companies to do more to protect consumers online.

The regulator also accepted voluntary commitments from Apple and Google regarding their mobile ecosystems--such as their smartphone operating systems and app stores--in February, instead of imposing binding requirements. Both companies were designated as having strategic status due to their mobile ecosystems in 2025.

Write to Edith Hancock at edith.hancock@wsj.com

(END) Dow Jones Newswires

March 31, 2026 08:58 ET (12:58 GMT)