UK CMA fresh SMS/DMCCA + EU DMA probes on MSFT dominance; LinkedIn GDPR scandal
Key Questions
What is the UK CMA investigating Microsoft for?
The UK Competition and Markets Authority (CMA) is launching a fresh probe into Microsoft's dominance, focusing on tying practices in Windows, Office, Teams, Copilot, and SQL Server, which allegedly lead to 5x higher costs and lock-in. The investigation also covers Strategic Market Status (SMS) under DMCCA and starts in May 2026. Microsoft has accepted voluntary commitments on egress and interoperability to avoid prior SMS designation and mitigate $60B cloud risks.
When does the CMA's investigation into Microsoft begin?
The CMA probe is set to commence in May 2026. It examines concerns from the ongoing cloud market investigation regarding Microsoft's business software ecosystem.
What commitments has Microsoft made to the CMA?
Microsoft has voluntarily accepted commitments on data egress and interoperability, which helped avoid a prior SMS investigation. Brad Smith has expressed cooperation with the regulator.
What is the status of EU probes into Microsoft?
EU DMA and DSA probes are paused or delayed due to US pressure leading to gutting of rules and rejection of CSAM scanning on April 3. This reflects US-EU alignment on AI issues.
What is the LinkedIn GDPR probe about?
The EU GDPR probe targets LinkedIn's browser tracking practices, known as BrowserGate, posing lighter risks compared to other issues. It echoes broader US-EU AI alignment efforts.
What was the outcome of the US FTC's challenge to Microsoft's Activision acquisition?
A US appeals court dismissed the FTC's challenge to Microsoft's $68.7 billion acquisition of Activision Blizzard.
What risks does Microsoft face from the CMA probe?
Potential risks include scrutiny over unilateral market power in cloud, AI, and software, with implications for a $60B cloud business. However, voluntary commitments may limit severity.
How is Microsoft responding to the UK regulator's actions?
Microsoft, led by Brad Smith, is cooperating with the CMA. Voluntary undertakings on egress and interop have been accepted to address competition concerns.
CMA launches fresh SMS probe (starts May 2026) into Windows/Office/Teams/Copilot/SQL tying plus DMCCA; accepts voluntary commitments avoiding prior SMS, $60B cloud risk. Brad Smith cooperating; EU DMA/DSA gutting under US pressure + CSAM scan rejection pauses probes; LinkedIn BrowserGate EU GDPR probe on browser tracking; new EU Copilot Flex routing defaults outside peaks raises GDPR opt-out friction. Lighter risks overall, echoes US-EU AI alignment; US FTC Activision challenge dismissed.