UK regulator proposes strategic market status for Microsoft's business software

The UK Competition and Markets Authority has proposed treating Microsoft as holding Strategic Market Status in its business software ecosystem. If adopted, the label would open a path to conduct rules affecting how Microsoft packages products such as Excel, Teams and Copilot. The regulator says the designation is a procedural gateway and does not assume wrongdoing. Public comments close on November 13, 2026, and a final decision is due by February 13, 2027. Microsoft has responded that its products, Copilot included, are open and interoperable. This was first observed today; the source reporting was dated in mid-October.

1. The CMA proposed designating Microsoft as having Strategic Market Status in its Business Software Ecosystem under the UK digital markets regime.
2. The proposal could affect bundling of Excel, Teams and the Copilot AI assistant.
3. The CMA says the designation does not find or assume wrongdoing.
4. Comments on the proposed decision are invited by November 13, 2026; a final decision is due by February 13, 2027.
5. The CMA will examine customer freedom to choose AI tools, security bundling and licensing effects on cloud choice.
6. Microsoft said its products, including Copilot, are open and interoperable.