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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Realistic photo of a Windows 11 laptop showcasing advanced Microsoft Copilot AI features, including voice activation and screen analysis, in an office environment.
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Microsoft brings advanced Copilot AI to all Windows 11 PCs

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Microsoft has announced a series of generative AI features for Windows 11, aiming to transform every PC into an 'AI PC' through voice activation, screen analysis, and automated file handling. These updates, including the 'Hey, Copilot' voice command and worldwide rollout of Copilot Vision, build on the company's agentic AI focus. The features emphasize natural user interactions while addressing past privacy concerns from tools like Recall.

Japan's Fair Trade Commission has launched an investigation into Microsoft Corp. on suspicion of violating the anti-monopoly law by charging higher licensing fees to businesses using its software on rival cloud services, sources close to the matter said Wednesday. The commission conducted an on-site inspection of the IT giant's Japanese subsidiary in Tokyo the same day. Microsoft stated it will cooperate fully with the probe.

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The United States has warned of restrictions on major European Union service providers in retaliation for EU tech regulations targeting American companies. This escalation follows a $140 million fine imposed on Elon Musk's X under the EU's Digital Services Act, drawing sharp criticism from the Trump administration. European officials maintain that their rules ensure a fair playing field for all businesses.

A recent Windows 11 preview has offered additional insights into the workings of AI agents. However, Microsoft's emphasis on this technology continues to spark debate. Complaints about the company's heavy focus on AI persist among users and observers.

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Microsoft has introduced new security enhancements designed to strengthen defenses in its Teams platform. These updates aim to provide better protection against malicious content. The announcement was made on December 30, 2025.

Apple is seeking to appeal a $2 billion antitrust fine imposed by a UK court over its App Store practices. The company aims to take the case to the UK's Court of Appeal after the Competition Appeal Tribunal rejected its initial appeal request. The ruling found Apple guilty of anticompetitive behavior in charging high fees to developers.

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Chinese authorities have instructed domestic companies to stop using cybersecurity software from more than a dozen US and Israeli firms due to national security concerns. The directive supports Beijing's drive to replace Western technology with homegrown alternatives amid intensifying tech competition with the United States. Three sources familiar with the matter said the notice was issued in recent days.

 

 

 

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