Microsoft’s cloud licensing practices draw fresh UK scrutiny

Microsoft could face stricter competition rules in the UK after the country’s watchdog said on Wednesday that it will look into designating the tech giant’s business software ecosystem with so-called “strategic market status” (SMS).

The Competition and Markets Authority (CMA) said the investigation into designating Microsoft’s suite of business products – such as Windows, Word, Excel, Teams and Copilot – would start in May.

If Microsoft software is designated as having SMS it would unlock bespoke powers for the CMA to tackle platform-specific competition concerns.

In a press statement, the CMA said a designation for the business software would allow it to act on a major concern identified by an earlier cloud market investigation, after the regulator found that Microsoft’s use of software licensing was reducing competition in the cloud sector.

The CMA also said the status would give it a pathway to ensure a level playing field among productivity software providers at…