UK regulator probes Microsoft for strategic market status

The UK's Competition and Markets Authority is investigating Microsoft to determine if it should receive strategic market status designation. The probe focuses on concerns over the company's influence in cloud services through software like Teams and Copilot. The formal investigation is set to begin in May.

The Competition and Markets Authority (CMA) has flagged a major concern regarding Microsoft's practices in the cloud sector. Officials point to productivity tools such as Word and Excel, the Teams chat application, AI companion Copilot, and even Windows as potential barriers to competition. Assigning strategic market status would give the CMA additional powers to intervene against the tech giant, according to the regulator's statement on March 31, 2026, as first reported by Engadget.

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Microsoft's Build 2026 keynote presentation on AI agents and models in San Francisco.
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Microsoft announces AI agents and models at Build 2026

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Microsoft opened its Build developer conference on Tuesday with a focus on AI tools and agents. The keynote in San Francisco featured multiple new models and hardware concepts.

The UK's Competition and Markets Authority will start a formal investigation this month into Microsoft's business software practices. Officials aim to assess whether bundling of products like Windows, Word, Excel, Teams and Copilot limits competition.

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Microsoft is considering ending internal use of Claude Code. The company aims to steer developers toward GitHub Copilot instead.

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