CMA examines Microsoft’s business software ecosystem: firms can respond by 13 November

On 16 October 2026, the Competition and Markets Authority (CMA) published a provisional view that Microsoft’s business software ecosystem may meet the criteria for strategic market status (SMS). The investigation concerns the UK market. This is a proposal, not a final designation or a rule already in force.

Why small firms may care

The CMA says more than 1 million UK businesses and public-sector organisations use software in the ecosystem, with around 20 million monthly users. These are different measures: organisations and individual users. The regulator is examining how product bundles, interoperability, cloud licensing and AI integration could affect choice. It has also published a roadmap of possible interventions. These are potential future measures: the announcement does not change subscription prices or confer an immediate right to leave an existing contract.

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What to do

1. If your firm buys Microsoft 365 or other business software, gather specific evidence of licensing terms, product tying, switching costs or compatibility issues that limit your options. Keep contracts, invoices and dates.
2. Read the CMA proposed decision and respond through the linked consultation portal or email business.software.sms@cma.gov.uk by 5pm on 13 November 2026, London time. No participation fee is stated.
3. Clearly mark commercially confidential material and provide a non-confidential version that the CMA may publish.

The CMA plans to make its final designation decision by 13 February 2027. Even a designation would not itself automatically lower prices: any specific requirements would need separate consideration. Official sources: the CMA announcement, the consultation and response instructions and the investigation page.