The CMA has announced a package of actions on business software and cloud services under the Digital Markets, Competition and Consumers Act 2024. Its Board has assessed several closely connected issues across cloud services and business software, with the aim of making sure that customers (including businesses and government) can benefit from the best available products at the most competitive prices. The CMA also wants to support greater choice, aimed at strengthening the resilience of the UK’s digital economy.
The CMA will launch a strategic market status (SMS) investigation into Microsoft’s business software ecosystem in May. It points out that very many UK businesses and public sector organisations use Microsoft’s business software (such as Windows, Word, Excel, Teams and increasingly Copilot) every day. An SMS designation would allow the CMA to act on a major concern from the CMA’s cloud market investigation – Microsoft’s use of software licensing reducing competition in cloud. It would also provide a route to ensuring a level playing field among providers at a critical moment, as AI-driven innovation reshapes competition in productivity software.
Following engagement with the CMA, Microsoft and Amazon have set out actions on cloud egress fees and interoperability to support greater choice for businesses and public sector organisations in the UK. These changes aim to reduce expense and effort for UK customers when using more than one cloud provider. The CMA says that it will continue active engagement with Microsoft and Amazon to ensure these actions on egress fees and interoperability truly benefit UK customers.
The CMA has also made clear further steps are required to help UK customers multi-home and switch, with ongoing dialogue to take place around these areas. It will seek views from UK customers and competitors to inform this dialogue, and the Board will review progress in six months.
