Microsoft is under investigation again in this European country: Windows, Office and Copilot are in focus

Artificial intelligence and fair market competition

Integration of the Copilot AI assistant into the već dominant products like Windows and Office prompted this investigation. Regulators want to ensure that users can freely combine AI and other tools from different service providers, that is, that Microsoft does not push its products on them using its dominant position as the most used operating system on the market. The main concern is the so-called “licensing tax,” a practice that allegedly makes it more expensive to use Microsoft software on competing cloud platforms (AWS, Google Cloud) than Microsoft’s Azure.

This is not the first time that Microsoft is under scrutiny from regulators. The company is moreć previously made concessions in cloud business, promising better interoperability and abolition of data transfer fees (egress fees) to make it easier for users to switch to other service providers. Because of those concessions, the CMA previously abandoned a similar investigation against Microsoft and Amazon in the cloud infrastructure market.

Reaction from Microsoft

Microsoft announced that they are ready to cooperate with the regulator. The president of the company, Brad Smith, stated that the company is moreć abolished data transfer fees at the global level for users who change service providers and emphasized that they are in favor of principles that prevent tying users to one provider.

“We are committed to working swiftly and constructively to resolve these matters, including providing the CMA with all the information it needs to continue its investigation,” Smith shared.