The UK’s antitrust watchdog has proposed stricter oversight of Microsoft Corp. over concerns that its dominance in business software is making it difficult for customers to switch providers. The Competition and Markets Authority (CMA) announced it will decide by February whether to designate Microsoft with strategic market status, a move that would grant the regulator powers to intervene in areas like cloud licensing, AI productivity tools, and security software.
The CMA’s proposal comes amid growing scrutiny of Microsoft’s market influence. The watchdog argues that the tech giant’s stronghold in business software creates barriers for competitors, potentially stifling innovation and limiting consumer choice. If designated with strategic market status, Microsoft would face heightened regulatory oversight to ensure fair competition.
The decision is expected by February, following a period of consultation and review. The CMA’s move underscores the increasing regulatory focus on big tech companies and their market practices, particularly in sectors where their dominance could have far-reaching implications for businesses and consumers alike.