The UK Competition and Markets Authority (CMA) has unveiled a series of actions targeting the business software and cloud services sectors, particularly focusing on Microsoft. The CMA plans to launch a strategic market status (SMS) investigation into Microsoft's business software ecosystem, which is widely used by UK businesses and public sector organizations.

This investigation is a response to concerns regarding Microsoft's software licensing practices that may hinder competition in the cloud market. The CMA aims to ensure that customers benefit from competitive pricing and a diverse range of products, especially as AI technologies increasingly influence productivity software.

In collaboration with the CMA, Microsoft and Amazon have committed to addressing issues related to cloud egress fees and interoperability. These changes are expected to facilitate easier switching between cloud providers for UK customers, thereby enhancing their choices and reducing costs.

The CMA's ongoing engagement with both companies will focus on ensuring that these actions effectively benefit UK customers. The authority will also seek feedback from customers and competitors to inform its approach and will review progress in six months.

The CMA's previous investigation into cloud services highlighted the significant market power held by Microsoft and Amazon, revealing barriers to customer choice due to data egress fees and interoperability issues. The CMA's proactive measures aim to foster a competitive environment that supports the resilience of the UK's digital economy.