The Competition and Markets Authority has announced a new investigation into competition within the UK business software market, raising questions about whether organisations have sufficient freedom to select, combine and change the software they use.
On 16 October 2026, the regulator proposed designating Microsoft as having strategic market status within its business software ecosystem, a step that could eventually allow the authority to introduce targeted measures intended to improve competition. However, the proposal remains subject to consultation, and no new restrictions or obligations have yet been imposed as a result of this announcement.
The investigation is particularly relevant to smaller businesses because software has become central to everyday administration, accounting, communications and customer management. Many organisations depend on familiar applications for email, document preparation, spreadsheets and online meetings, while increasingly using additional services for accounting, payroll, customer records and artificial intelligence.
Why changing software can be difficult
Although businesses may have a wide selection of software products available, moving between providers is not always straightforward. Information may need to be transferred, employees retrained and existing systems reconfigured, while applications that work together within one supplier's ecosystem may not integrate as easily with competing products.
The regulator is examining whether these difficulties restrict customer choice, particularly where software is sold in packages or where integration arrangements make alternative products less attractive.
For smaller businesses, the practical issue is whether they are obtaining good value from their existing software arrangements or simply continuing with familiar products because changing would be inconvenient.
Review your existing arrangements
A periodic software review can help establish whether the business is paying for services it no longer needs, whether employees are making full use of available features and whether alternative products could provide better value.
Businesses should also consider the consequences of becoming heavily dependent on a single supplier, particularly where essential records, communications and administrative processes rely on interconnected applications.
However, changing software solely to reduce subscription costs may prove counterproductive if the transition creates disruption or additional training requirements. Any decision should therefore consider the total cost of ownership, including implementation, support, security and staff time.
The Competition and Markets Authority's investigation may eventually lead to greater choice, but businesses do not need to wait for regulatory changes before reviewing their own arrangements.
A sensible starting point is to list the software subscriptions currently being paid, identify who uses each product and assess whether the business is obtaining sufficient value from its investment.