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Random freezes, missing sound and display glitches usually trace back to one bad driver. Find and replace yours safely.Free scan · under a minuteThe UK Competition and Markets Authority (CMA) opened an investigation on 14 May 2026 into whether Microsoft should receive a strategic market status (SMS) designation for its business-software ecosystem. Microsoft has not been designated, and the CMA has not found wrongdoing.
Amazon Web Services (AWS) is not part of this new Microsoft business-software case. But calling AWS “off the hook” is too broad: AWS remains involved in the CMA’s separate cloud-services work on egress fees and interoperability.
What the CMA is investigating
The case examines Microsoft’s position across a group of business-software markets and whether that position could reduce choice for UK organisations. The CMA says it will assess:
- Productivity software
- Personal-computer and server operating systems
- Database management systems
- Security software
The authority will look at whether bundling, default settings or limits on interoperability make it harder for customers to use rival products or switch suppliers. It will also examine whether artificial-intelligence companies can integrate their tools with Microsoft software, allowing organisations to use AI products from multiple providers.
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Microsoft’s ecosystem has more than 15 million commercial users, according to the CMA’s launch announcement. That scale is relevant to the authority’s assessment of Microsoft’s position, but it is not itself a finding that Microsoft has breached competition law.
What “strategic market status” would mean
An SMS investigation asks whether a company has substantial and entrenched market power in a digital activity and whether that activity has a position of strategic significance. A designation would give the CMA a framework to consider targeted, proportionate conduct requirements under the Digital Markets, Competition and Consumers Act 2024.
The current case is only about whether to designate Microsoft. The CMA is gathering evidence; an investigation or possible designation does not establish that Microsoft has acted unlawfully. As CMA Chief Executive Sarah Cardell put it on 14 May 2026, “Our aim is to understand how these markets are developing, Microsoft’s position within them and to consider what, if any, targeted action may be needed to ensure UK organisations can benefit from choice, innovation and competitive prices.”
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Why AWS is outside this particular case
The newly opened investigation is a Microsoft business-software case, not a new investigation naming AWS. AWS was nevertheless central to an earlier, different CMA process covering cloud services.
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1Clear out junk files and repair common Windows errors2Fix the driver behind crashes, sound loss and screen glitches3Repair Windows errors before they cause bigger problemsIn that cloud-services market investigation, the CMA found significant market power held by Amazon and Microsoft and identified cloud egress fees, interoperability barriers and Microsoft software licensing as issues that could affect customer choice and competition. The investigation closed on 31 July 2025, with a recommendation that the CMA prioritise considering SMS investigations into both Microsoft and AWS in cloud services.
On 31 March 2026, the CMA announced a package combining the Microsoft business-software SMS investigation with continued engagement with Microsoft and Amazon on cloud egress fees and interoperability. Both companies had set out actions, but the CMA said it would continue assessing whether those actions benefit UK customers and would seek views on multi-homing and switching. The authority said its Board would review progress after six months.
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That means AWS is outside the new business-software investigation while still within the CMA’s ongoing cloud-services engagement. The two tracks concern different markets, conduct and procedures.
Microsoft and AWS: the two CMA tracks compared
| Issue | Microsoft business-software case | Cloud-services track involving Microsoft and AWS |
|---|---|---|
| Subject | Microsoft’s productivity, operating-system, database and security ecosystem, including AI interoperability | Public cloud services, including egress fees, interoperability and switching |
| Process | Open SMS investigation under Part 1 of the Digital Markets, Competition and Consumers Act 2024 | Continued CMA engagement after the cloud-services market investigation closed |
| Decision status | No SMS designation has been made | The earlier investigation produced findings and a recommendation to consider SMS work involving Microsoft and AWS |
| Next announced step | Evidence gathering, a proposed decision, consultation and a final decision report | Assessment of the firms’ egress-fee and interoperability actions, including customer views on switching and multi-homing |
Published timetable—and what it does not confirm
The CMA’s case page labels the Microsoft investigation open. Its published timetable is expressly indicative and can change:
- Through September 2026: further evidence gathering.
- September to October 2026: preparation of a proposed decision.
- October to November 2026: consultation on the proposed decision, with consultation scheduled to close in November.
- February 2027: final decision report and any SMS decision notice.
The statutory deadline listed by the CMA is 13 February 2027. The case page was last updated on 23 June 2026, and no later update was displayed there as of 28 September 2026. The dates above should therefore be read as the CMA’s published plan, not proof that each interim milestone has already been completed.
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What could change for UK organisations
Potential effects on software choice
If the CMA eventually designates Microsoft, it could impose conduct requirements aimed at preserving customer choice. The authority has not specified any remedy, and any intervention would have to satisfy the legal tests and be targeted and proportionate.
Switching and interoperability
The investigation puts practical switching questions at the centre: whether products work effectively with rival services, whether defaults steer customers toward Microsoft options, and whether technical or contractual limits make multi-provider setups harder.
AI procurement
For organisations buying AI tools, the CMA’s stated focus on integration matters. The question is whether Microsoft’s software environment allows customers to connect competing AI providers on workable terms rather than making one supplier the default or easiest option.
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- Work at the speed of your ideas – Built with the latest Qualcomm Snapdragon X2 Elite (12 Core) processors, Surface Laptop delivers fast, AI‑accelerated performance—making it the most powerful Surface laptop for everything from multitasking to demanding workloads.
- The ports you need – Charge on-the-go, transfer data fast, or create the ultimate desktop set up with two USB-C / USB4[4] ports.
- Built-in AI Companion – Work smarter, create freely, and communicate with confidence—Copilot[5] on Windows 11 is always there to help.
Cloud costs remain a separate issue
Businesses should not treat the Microsoft business-software case as resolving cloud lock-in concerns. Egress charges—the fees associated with moving data out of a cloud—along with interoperability and multi-homing remain part of the CMA’s cloud engagement with both Microsoft and Amazon.
What happens next
The immediate question is whether the CMA will propose designating Microsoft and, after consultation, make that designation by the statutory deadline. Until then, customers should distinguish an evidence-gathering investigation from a final regulatory finding.
For procurement and finance teams, the useful near-term steps are practical rather than speculative:
- Map where Microsoft software is bundled, set as a default or required for integration.
- Record the technical and contractual effort involved in using rival productivity, security, database or AI products.
- Review cloud egress terms and data-portability plans separately from the business-software review.
- Track CMA consultations and respond with concrete evidence about switching costs, interoperability failures or customer benefits.
Bottom line
AWS is not named in the CMA’s new Microsoft business-software SMS investigation, but it is not cleared of the authority’s broader cloud concerns. Microsoft faces an open investigation into whether it should be designated; AWS remains under separate CMA engagement over cloud egress fees and interoperability. Neither track has produced a new SMS designation for the companies as of 28 September 2026.
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