UK regulator launches probe into Microsoft’s business software

The UK competition watchdog has opened a new investigation—referred to as an SMS investigation—into how Microsoft sells its office tools to companies. The probe will scrutinise licensing practices for key software such as Windows, Word, Excel, and Teams.

Why It Matters

• Over half a million UK firms and government bodies rely on these programs daily.
• Unfair practices could negatively impact a vast user base.
• The regulator aims to maintain market fairness, especially as AI features like Copilot become common in business applications.

Microsoft’s Response

• The company has pledged to cooperate and address concerns promptly.
• It warns that further reviews may follow if issues arise.

Potential Impact

• The investigation could influence how Microsoft packages and charges for its cloud services, a major revenue source.
• If problems are identified, the regulator could enforce changes to pricing or licensing rules.

Stakeholder Watch

Competitors and customers who depend on Microsoft’s software for everyday work will closely monitor the outcome.