Microsoft (MSFT) is being investigated by the UK's Competition and Markets Authority over whether the technology giant should be designated as having Strategic Market Status in its business software ecosystem under the country's digital markets regime, the regulator said Friday.

The watchdog said it is examining Microsoft's position in the market and has launched customer research to understand how UK businesses purchase Microsoft software, the alternatives available to them and how easily they can switch providers.

The investigation, launched on May 14, will include evidence gathering from Microsoft, customers and other market participants, the regulator said.

The CMA has also invited comments from interested parties as it assesses potential competition concerns and possible interventions.

The watchdog said it expects to publish a proposed decision in October, with a final ruling due by Feb. 13, 2027.

Microsoft did not immediately respond to MT Newswires' request for comment.