The Competition and Markets Authority (CMA) has launched a strategic market status (SMS) investigation into Microsoft’s business software ecosystem, representing the fourth SMS investigation since the UK’s digital markets competition regime commenced in January 2025. The CMA will assess whether Microsoft holds SMS in the business software market and whether its market position could limit customer choice through practices such as product bundling, interoperability restrictions or default settings. As part of this assessment, the CMA will examine Microsoft’s provision of productivity software, personal computer (PC) and server operating systems, database management systems and security software used by UK organisations. The CMA has published an SMS investigation notice and invitation to comment, with responses due by 4 June 2026. It will conduct a public consultation before reaching a final decision. The investigation must be completed within 9 months, with a final designation decision expected by February 2027. An SMS designation would enable the CMA to consider interventions in relation to a key concern identified during its cloud market investigation, namely Microsoft’s software licensing practices, which were found to be limiting competition in the cloud services market.