The Competition and Markets Authority (CMA) has initiated steps to designate Microsoft with strategic market status (SMS) in the business software sector. This decision follows an investigation into Microsoft's influence on businesses and public sector organizations in the UK.

The CMA is consulting on its findings and has outlined a roadmap for potential interventions aimed at improving competition and customer choice. Key areas of focus include Microsoft's bundling practices and the integration of its software with third-party products.

Microsoft's business software, which includes widely used applications like Word, Excel, and Teams, is critical for over a million businesses in the UK. The CMA emphasizes the importance of ensuring that customers have genuine choices and that competition fosters innovation.

The CMA's investigation revealed that Microsoft's strong market position creates barriers for customers wishing to switch to alternative software, limiting their options. The authority aims to promote a more competitive environment that could lead to lower prices and enhanced innovation.

In addition to the SMS designation, the CMA is actively engaging with Microsoft and Amazon Web Services (AWS) to improve customer choice in cloud services. Recent developments include removing data transfer fees and enhancing interoperability between cloud providers.

The CMA is committed to addressing remaining barriers to switching cloud services and will continue to monitor progress while considering the possibility of a full SMS investigation.