The UK’s Competition and Markets Authority (CMA) has proposed giving Microsoft strategic market status for its business software. The designation could allow the regulator to intervene in how Microsoft bundles products such as Excel, Teams and its Copilot AI assistant.

The CMA’s investigation, which began in May, found that Microsoft has a strong position in productivity software. It also found that customers face significant barriers when switching to competing services.

The CMA is inviting feedback on the proposal and will make a final decision by February. If approved, this would be the third use of the regulator’s new digital market powers, following designations for Google and Apple. Microsoft said it disagrees with the proposed decision.