The Microsoft UK cloud investigation has been reopened as Britain’s competition watchdog intensifies scrutiny of the tech giant’s software licensing practices.
The Competition and Markets Authority (CMA) announced it will examine Microsoft again as part of a wider probe into the cloud computing sector. The move comes months after the regulator chose not to act on earlier findings.
Previously, a CMA inquiry group found that Microsoft and Amazon dominate the cloud market, raising concerns about fair competition. The Competition and Markets Authority (CMA) investigated the supply of public cloud infrastructure services in the UK.
Microsoft, in particular, was accused of using its enterprise software ecosystem—such as Windows Server and Microsoft 365—to restrict competitors. According to the findings, the company imposed licensing fees when customers used its software on rival cloud platforms.
The regulator said both Microsoft and Amazon have already taken “material steps” to reduce some fees following earlier scrutiny. Together, the two companies control around 30–40% each of the cloud services market, including processing, storage, and networking. Google remains a smaller competitor with a 5–10% share.
The CMA now plans a deeper investigation into Microsoft’s broader business software ecosystem. This could lead to the company being assigned “strategic market status,” which would allow regulators to impose targeted rules. If designated with this status, Microsoft could face stricter oversight on how it licenses software and interacts with competitors.
CMA chief executive Sarah Cardell said the regulator is taking a “flexible, pragmatic” approach to ensure faster results for UK customers.
“Cloud remains central to our approach,” she said, noting improvements in areas such as data transfer fees and interoperability.
Microsoft stated that the agreed changes focus on easing restrictions around data movement, switching providers, and interoperability. The company said these adjustments aim to give customers greater flexibility to operate across different cloud platforms with less friction.
Amazon also responded, highlighting its efforts to support multicloud adoption, data portability, and easier switching between providers. The UK investigation is part of a broader trend. Regulators in the European Union and the United States are also examining competition in the cloud computing industry.
As cloud services become increasingly essential for businesses worldwide, regulatory pressure on major providers is expected to grow
