The UK Competition and Markets Authority (CMA) has initiated a formal review of Microsoft’s business software ecosystem, focusing on whether its licensing practices restrict competition in the cloud services market. The move follows the regulator’s broader assessment of the cloud sector and reflects concerns that Microsoft’s pricing structure for products such as Windows Server and SQL Server may disadvantage rival platforms.
The CMA is examining whether these practices increase costs for customers seeking to run Microsoft software on competing clouds, potentially limiting market choice and reinforcing Azure’s position. The authority has also outlined the potential use of its strategic market status designation, which would allow it to impose tailored obligations if anti-competitive effects are identified.
Alongside the investigation, the CMA acknowledged commitments from Microsoft and Amazon to address interoperability and data transfer barriers, including changes to egress fees and expanded switching timelines. Despite these measures, the regulator indicated that further action may be required to support multi-cloud adoption and reduce customer lock-in.
The CMA will consult industry participants and review progress within six months, while the Microsoft-focused probe is expected to begin shortly and run for up to nine months. The outcome may influence future regulatory approaches to cloud infrastructure and emerging digital markets, including AI-related services.
