UPDATE 1 — UK competition regulator targets Microsoft's business software grip

CMA proposes Microsoft strategic market designation Move would open door to scrutiny of bundling, Copilot Microsoft says all its products are already interoperable Microsoft, AWS must address remaining barriers in cloud (Adds CMA CEO quote in paragraphs 7-9, details on cloud review and AWS response in paragraphs 13-17) By Paul Sandle and Yadarisa Shabong LONDON, Oct 16 (Reuters) — Britain's competition watchdog proposed designating Microsoft with "strategic market status" in business software, potentially paving the way for interventions in how the US tech major bundles products such as Excel, Teams and its Copilot AI assistant. The Competition and Markets Authority launched an investigation in May into whether Microsoft's position in software used by around 20 million people a month in Britain was uncompetitive. On Friday, the regulator said it had found that Microsoft had a strong position in personal computer operating systems and productivity, security, server and database management software, reinforced by barriers customers faced when switching. A Microsoft spokesperson said it did not share the CMA's view. "All our products — including Copilot — are open and interoperable, g