The CMA publishes a package of actions on enterprise software and cloud services

The CMA’s approach under the Digital Markets Competition Authority is to deliver the greatest possible impact for the UK as quickly and as evenly as possible, using planning flexibility to choose the most effective approach for each issue.

The CMA board is looking at a number of closely related issues across cloud services and business software, with the aim of ensuring that customers (including businesses and government) can benefit from the best available products at the best possible price, while supporting a wider choice to strengthen the stability of the UK’s digital economy.

Actions announced today include:

• The CMA will launch a market situation strategy (SMS) review of Microsoft’s business ecosystem, starting in May. Hundreds of thousands of UK businesses and public organizations use Microsoft business software (such as Windows, Word, Excel, Teams and increasingly Copilot) every day. The SMS designation will allow the CMA to act on a major issue from the CMA’s cloud market research – Microsoft’s use of software licenses that limit competition in the cloud. It will also provide a way to ensure a level playing field among providers at a critical time, as AI-driven innovation transforms the competition in productivity software.
• After collaborating with the CMA, Microsoft and Amazon have introduced actions on cloud egress fees and collaboration to support greater choice for UK businesses and public organisations. These changes will reduce costs and effort for UK customers when using more than one cloud provider. The CMA will continue to work with Microsoft and Amazon to ensure that these actions on egress fees and partnerships really benefit UK consumers.
• The CMA has also outlined other measures needed to help UK consumers own more homes and switch, with discussions continuing to take place in these areas. It will seek feedback from UK consumers and competitors to inform this discussion, and the Board will review progress every 6 months.

Why cloud services and business software, and why now?

CMA’s 2025 market research on cloud services has found that Amazon and Microsoft hold significant market positions. The research found limits to customer choice due to data outage fees and interoperability barriers that restrict flexibility with multiple clouds; as well as licensing Microsoft’s business-critical software in the cloud.

Since the investigation closed in July 2025, the CMA has engaged with UK consumers, Amazon, Microsoft and their competitors on these issues. In consultation with the CMA, both firms are taking steps to lower exit fees and improve cooperation, including as reflected in the announcements the firms are making today. These actions create benefits for UK businesses, enabling greater manufacturing space to support consumer choice and the strengthening of the UK’s technology portfolio.

In addition to cloud licensing issues, the CMA has heard many concerns about Microsoft’s position in business software – especially productivity software, operating systems, database management and security-related services. This software plays a vital role in the UK economy, supporting modern business operations.

The incorporation of advanced AI, including assistants and emerging technologies, into common workplace tools means this is a pivotal moment in the industry. The implications are significant for UK productivity, competitiveness and value for money from both the private and public sector. The UK will benefit greatly where a wide range of competitors can adapt to Microsoft’s business software, so that business and public organizations can mix and match AI software from suppliers to best suit their needs.

Sarah Cardell, Chief Executive of the CMA, said:

We use governance in a flexible, effective way to deliver real impact, as quickly as possible, for UK consumers. This announcement shows that we are not only responding to today’s challenges but also moving forward with emerging issues. Cloud remains at the center of our approach – we have seen real progress through our collaboration with Microsoft and Amazon to drive meaningful improvements in egress payments and collaboration and we expect them to take further action in the coming months.

At the same time, we are taking action now, deciding to start research on Microsoft’s business software ecosystem. The SMS designation can help us address the remaining issues with Microsoft’s cloud licensing practices and will help us ensure that the AI ​​level of play quickly permeates everyday business software.

With this package of actions, we are driving changes across the internet and business software to ensure these markets are competitive and robust for UK businesses and the public sector.

You can read more about the CMA’s action package here: Actions on cloud and business software in the UK digital market competition system.

Notes to editors

1. The purpose and scope of the SMS survey and invitation to comment will be presented at the start of the survey in May.
2. Once started, SMS investigations can take up to 9 months to complete, and the CMA has set an interim perspective before making a final decision. If at the end of the investigation, the CMA decides to choose, it may set ethical requirements or introduce competition measures, itself based on different legal mechanisms, to achieve better results for consumers and businesses in the UK.
3. As previously stated in his written response to the Business and Commerce Select Committee, CMA Chairman Doug Gurr recused himself from the CMA Board’s decision.
4. All press inquiries should be directed to the CMA’s press office by email at press@cma.gov.uk, or by telephone on 020 3738 6460.