CMA Probe into Microsoft Software Bundling and AI Enters Second Week

As of May 20 the UK Competition and Markets Authority’s nine-month investigation into Microsoft’s business software ecosystem remains active following its formal launch on May 14. The probe examines bundling of Windows, Office, Teams and Copilot, interoperability limits, default settings and cloud licensing that affect roughly 15 million users. Microsoft has pledged cooperation and had already lowered Azure switching fees in March to address prior CMA concerns. The inquiry marks the regulator’s fourth SMS review under January 2025 legislation and is scheduled to conclude with a possible designation decision by February 2027, sustaining regulatory uncertainty for MSFT shares.