British competition authorities are considering whether to slap a “strategic market status” designation on Microsoft, a move that could reshape how the company sells its core business software across the United Kingdom. The Competition and Markets Authority announced the proposal today and has opened a consultation, with a final ruling expected in February.
At the heart of the CMA’s concern is Microsoft’s long-standing habit of selling applications in bundles — Excel, Teams and Copilot among them. A strategic market status label would hand regulators broad powers to impose remedies, potentially including forced unbundling. That prospect lands squarely on a sensitive nerve: Microsoft has staked much of its current growth story on stitching established office software together with newer AI capabilities. Any mandate to separate those products could complicate how the company distributes its software suites in Britain.
Shares Shrug Off the Regulatory Noise
Investors, for now, appear unbothered. Microsoft’s stock changed hands at EUR 480.05 today, a dip of 0.2%, while the monthly tally still shows a gain of 12%. The equity sits just shy of its record territory — yesterday’s close of EUR 481.05 leaves it only 2.3% below the 52-week high of EUR 492.40 touched on Tuesday.
Sell-side analysts have been adding fuel. Barclays on Tuesday reiterated its “Overweight” rating and raised its price target from $512 to $600. Reuters reported that several other major research houses have also nudged their targets higher.
Product news is flowing as well. Microsoft began shipping its new Surface Laptop Ultra devices on Friday, following their unveiling earlier this month as part of a broader AI push for Windows.
Azure Maia 300 and the Push for Chip Independence
Behind the scenes, Microsoft is laying groundwork for its next generation of data centers. The company unveiled its in-house Azure Maia 300 processor, part of an effort to reduce reliance on outside semiconductor suppliers for AI workloads. Commercial deployment is slated for 2027, with capacity to be scaled into the gigawatt range. A spokesperson also made clear that Azure’s leadership has not handed teams any cost-cutting mandates.
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Infrastructure security is getting attention too. Microsoft has teamed up with Marvell Technology and Oracle to form a working group under the Open Compute Project, aimed at creating an open specification for integrated hardware security modules — a response to the mounting security demands that come with hyperscale buildouts.
Calls for Guardrails, and a PERM Setback
Management is simultaneously urging clearer rules for the technology itself. Brad Smith, Microsoft’s president, has called for binding global safety standards and independent audits of new systems, pointing out that artificial intelligence currently faces fewer safety obligations than everyday consumer products. His comments come roughly a week after news emerged that the U.S. Department of Labor had temporarily suspended the company from the PERM program for work permits. Smith warned that restrictions on green card access for foreign specialists could erode America’s technological competitiveness.
Authorized personnel, he added, must be able to pause or shut down systems while a task is running.
October 28 Looms Large
The next hard data point arrives on October 28, when Microsoft reports results for the first quarter of fiscal 2027. That release should shed light on how heavily the company’s AI infrastructure spending is translating into cloud and software revenue — and whether the stock can close the gap to its record high.
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