digital markets regime

The UK Competition and Markets Authority (CMA) has opened a Strategic Market Status (SMS) investigation into Microsoft's business software ecosystem under the digital markets regime. This probe examines whether Microsoft's dominance in workplace software—including Windows, Office, Teams, and Copilot—creates a control layer that limits competition in cloud, cybersecurity, communications, and AI services. The investigation focuses on licensing practices that may lock customers into Azure, potentially reshaping how enterprises buy and mix cloud services in the UK. The digital markets regime allows the CMA to impose conduct requirements if Microsoft is designated with SMS, with implications for enterprise IT and AI adoption.