The CMA has announced a new package of action on business software and cloud services, including a strategic market status investigation into Microsoft’s business software ecosystem from May. That may sound like a story for lawyers and regulators, but smaller firms should not ignore it. If your business relies on Microsoft 365, Teams, Copilot, Windows or a cloud platform sitting behind your website, finance system or booking tools, this is really a story about how easy it is to switch suppliers and avoid getting boxed in.
In plain English, the CMA thinks some parts of the market are not working as well as they should for customers. Its announcement says Microsoft and Amazon have taken material steps on cloud egress fees and interoperability after engagement with the regulator, but it also says more progress is needed to make switching easier for UK customers.
What the CMA has actually announced
The headline move is that the CMA board has decided to launch an investigation into Microsoft’s business software ecosystem in May. The regulator says this could give it a route to tackle concerns about Microsoft’s software licensing in cloud services, while also looking at competition issues as AI is built deeper into everyday workplace tools.
Alongside that, the CMA says Microsoft and Amazon have set out actions on cloud interoperability and egress fees. Those are not glamorous terms, but they matter. Egress fees are charges linked to moving data out of a cloud provider. Interoperability is about how easily different systems work together. If moving data is expensive or awkward, or if products are designed in ways that make mixing suppliers harder, smaller firms can end up sticking with a setup that no longer suits them.
The CMA’s earlier cloud market investigation had already found concerns around customer choice, switching barriers, egress fees and Microsoft’s cloud licensing. This week’s announcement is the next step, not the start of the issue.
Why this matters to smaller firms
Big companies can afford specialist procurement teams, long legal reviews and major migration projects. Most SMEs cannot. Many smaller firms pick software simply because it works.
That is exactly why switching barriers matter. If your files, email, meetings, customer data and AI tools are all tied tightly to one ecosystem, it becomes harder to negotiate on price, trial alternatives, or leave if service changes or costs rise.
This also matters because AI is now being bundled into familiar office software. The CMA says advanced AI assistants and agent-style tools are being embedded into the products businesses use every day. We touched on that wider shift in our piece on the new AI apprenticeship for UK employers. For smaller firms, the opportunity is obvious, but so is the risk of buying more deeply into one supplier before the rules of the market are settled.
What to check now, before any rule changes arrive
There is no new form to fill in today and no sudden requirement to move systems. But this is a good moment to do some basic housekeeping.
- Check renewal dates and minimum terms. Know when your cloud or software contracts renew and how much notice you need to give.
- Check export and exit terms. Make sure you know how to get your data out, in what format, and whether any charges or technical limits apply.
- Check where AI features are being bundled in. If you are paying extra for assistants, copilots or add-ons, be clear what problem they solve and whether they increase dependence on one supplier.
- Check which tools are mission-critical. Email, documents, payments, booking systems and compliance tools deserve a clearer fallback plan than nice-to-have apps.
- Check your security basics. As we saw when covering the Companies House WebFiling security issue, digital convenience does not remove the need for sensible controls, backups and access reviews.
What this does not mean
It does not mean Microsoft or Amazon have done anything new to your business today. It does not mean small firms should rip out software in a panic. And it does not mean cheaper cloud bills are around the corner. Regulatory action takes time, and the CMA has said it will review progress again in six months while the Microsoft investigation can take months more.
But it does mean smaller businesses have been given a useful signal. The regulator is openly saying customer choice, switching and fair competition in business software matter, especially as AI becomes part of the same stack. That is worth noting before renewal notices and expansion plans make the decision for you.
The practical takeaway
If you run a small business, treat this as a prompt to understand your own tech dependence a little better. You do not need a grand digital transformation project. You just need a clear view of where your business could get stuck, what would be hard to move, and whether your next software decision gives you more flexibility or less.
For SMEs, that is the real value in this story. The CMA may be talking about cloud markets, software ecosystems and AI competition. On the ground, the question is simpler: are your tools helping you run the business, or quietly making it harder to choose what comes next?
Sources
- CMA, CMA announces package of actions on business software and cloud services, published 31 March 2026
- CMA, Cloud services market investigation, accessed 31 March 2026
