UK watchdog moves to put Microsoft’s business software under special oversight

The CMA has proposed strategic market status for Microsoft, opening the door to rules on bundling, switching and AI tools The UK’s Competition and Markets Authority wants a much closer look at how Microsoft runs its business software empire. On October 16, 2026, the regulator proposed designating Microsoft with “strategic market status” (SMS) within its business software ecosystem. That label would let the CMA write specific rules for how the company operates, rather than relying on case-by-case enforcement after problems surface. Think of SMS as a special category for companies the regulator considers too central to ignore. Once a firm is in it, the CMA can impose conduct requirements, which are tailored obligations on how the business behaves. The watchdog is focused on three pressure points.

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