TLDR: The Competition Commission of India (CCI) has launched an internal study into Google and Microsoft’s practice of integrating AI solutions with their respective office suites, examining whether this constitutes anti-competitive behavior under Sections 3(4) and 4 of the Competition Act.
The Competition Commission of India (CCI) is currently undertaking a detailed internal examination into the business practices of tech giants Google and Microsoft. The investigation focuses on whether their strategy of bundling advanced Artificial Intelligence (AI) solutions with their established office productivity suites creates an unfair competitive advantage, potentially violating India’s Competition Act. This probe, initiated on September 16, 2025, aims to determine if such integration stifles competition, particularly for companies offering standalone office software or AI services.
Sources close to the matter indicate that the CCI is at an advanced stage of its preliminary research and is actively building a case against the two Big Tech firms. The primary concern is that the bundling of AI capabilities, such as Microsoft’s Copilot with Microsoft 365 or Google’s AI integrations with its Workspace suite, could adversely impact smaller companies and those offering specialized services. Rivals like Zoho and HubSpot, which compete in the office suite market, could face significant challenges if the bundling is deemed anti-competitive.
The investigation specifically scrutinizes potential violations of Section 3(4) and Section 4 of the Competition Act. Section 3(4) deals with anti-competitive agreements among enterprises, while Section 4 addresses abuse of dominant position. Experts suggest that the CCI will need to carefully evaluate whether to pursue the matter under Section 4, or Section 3(4, whose scope was broadened by a 2023 amendment. A competition lawyer noted, ‘Since Indian competition law does not recognise the concept of ‘collective dominance,’ Microsoft and Google may need to be assessed in distinct relevant markets. Once an enterprise is found to be dominant, it assumes a ‘special responsibility’ and is held to stricter standards of fairness and transparency in its dealings with market participants. This generally results in heightened scrutiny of its commercial conduct.’
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Microsoft, for instance, integrated its AI service Copilot with Microsoft 365 in March 2023, offering AI assistance across applications like Word, Excel, PowerPoint, Outlook, and Teams. Similarly, Google has been enhancing its Workspace suite with various AI functionalities. While tying and bundling are not inherently illegal, they necessitate a prima facie assessment to determine if they cause harm to competition. If the CCI’s preliminary research concludes that these practices are anti-competitive, it would issue an order and refer the matter to its investigation arm for a more formal inquiry.
