The Competition and Markets Authority (CMA) has announced a strategic market status investigation into Microsoft’s business software ecosystem, set to commence in May 2026, aimed at enhancing competition and customer choice for UK businesses and public sector organizations amid significant advancements in AI. Following engagement with the CMA, Microsoft and Amazon have committed to reducing cloud egress fees and improving interoperability, which will facilitate better multi-cloud options for UK customers. The CMA’s 2025 investigation into cloud services revealed that both companies hold substantial market power, limiting customer choice due to high egress fees and interoperability barriers. The CMA emphasizes the need for ongoing dialogue with stakeholders to address these issues and ensure a competitive landscape, particularly as AI technologies become integrated into business software. The investigation may lead to pro-competitive interventions to benefit UK consumers and businesses.
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