The UK’s Competition and Markets Authority (CMA) has launched an investigation into Microsoft‘s enterprise software licensing practices. The probe will examine whether terms for Azure, Office, and Copilot unfairly disadvantage rival cloud services like AWS and Google Cloud. Microsoft President Brad Smith stated the company will cooperate constructively, and analysts suggest the investigation is unlikely to immediately impact the company’s significant cloud revenues.
The UK’s Competition and Markets Authority (CMA) has officially launched a probe into Microsoft‘s dominance in enterprise software. It will specifically scrutinize licensing for Azure, Office, and its Copilot AI tool.
The investigation focuses on whether Microsoft‘s terms make it too costly to use products like Windows Server on competing clouds such as AWS or Google Cloud. Regulators are also examining how Copilot is bundled with existing business tools. Microsoft President Brad Smith said, “the company will cooperate constructively with the probe.”
This regulatory scrutiny arrives as Microsoft stock (MSFT) recorded its worst quarterly performance since 2008. The development could prompt a short-term negative reaction in the company’s stock price.
The CMA investigation typically takes about nine months to complete. Analysts project it will not hamper Microsoft‘s cloud business, which generates approximately $30 billion in quarterly revenue.
