The UK Competition and Markets Authority (CMA) recently completed a three-year investigation, concluding that Microsoft’s Azure and Amazon’s Web Services do not hold dominant positions in the cloud market under the Digital Markets, Competition and Consumers Act (DMCC). However, the CMA is launching a new Strategic Market Status (SMS) investigation into Microsoft’s corporate software—including Windows, Word, Excel, and Teams—expected to begin in May. CMA CEO Sarah Cardell emphasized that an SMS designation could address concerns regarding Microsoft’s licensing practices and foster a competitive landscape, especially as AI becomes integrated into business software. Microsoft has expressed commitment to addressing these issues proactively. The CMA also highlighted potential risks of the AI market becoming closed if Microsoft does not allow third-party AI developers access to its ecosystem. This investigation signals the CMA’s efforts to ensure competitive pricing and innovation across cloud and business software sectors for UK enterprises.
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