The UK CMA is launching an investigation to determine whether Microsoft holds strategic market status (SMS) and whether its dominance in cloud, productivity software, Teams, Copilot, and Windows may be limiting competition.

Both Microsoft and Amazon Web Services have pledged steps to improve cloud interoperability and reduce egress fees to ease switching between providers and move data more freely.

CMA chief executive Sarah Cardell said the CMA remains engaged with Microsoft and AWS and signaled more actions in the coming months to address licensing practices and maintain a level playing field as AI becomes more integrated into business software.

Details on the probe’s scope, timeline, or remedies weren’t disclosed in the excerpt, but regulatory action is advancing as of late March 2026.

The market displays a cautious to fragile technical picture with elevated volatility and a sharp year-to-date decline, suggesting headlines could drive outsized moves.

Analysts remain broadly positive on Microsoft’s prospects, with a strong buy posture, though valuation and regulatory risk may cap upside until policy clarity improves.

The article points to related commentary from Business Cloud and notes that HyperLaw has been acquired by an Australian outfit.

Industry voices are divided: some see the probe as addressing pricing and switching costs, others warn that uneven scrutiny could weaken regulatory aims.

Microsoft’s fundamentals remain solid, with healthy margins and cash generation, supporting a longer-term bullish view despite regulatory uncertainty.

AWS counters with its Interconnect multicloud offering for private data transfers and interoperability features, highlighting support for new protocols and identity federation.

AWS updated its UK terms with an Addendum to support multi-cloud adoption, data portability, and switching, while noting ongoing CMA engagement.

The SMS designation process typically lasts about nine months, aiming for a provisional view followed by a final decision, with potential remedies to boost interoperability and curb lock-in.