Microsoft NHS deal probe as UK rivals ‘are elbowed out’

BUSINESS Secretary Kwasi Kwarteng is investigating claims that the US tech giant Microsoft has elbowed British firms out of millions of pounds of NHS contracts by giving remote-meeting software to the Health Service.

Officials in Mr Kwarteng’s Business Department are looking at claims that what was seen as a generous offer during the pandemic – providing Teams software free to the NHS – has led to a ‘takeover by stealth’ of its IT systems.

The software package, which is used by up to 1.2 million NHS staff, is estimated by industry sources to have saved the Health Service millions of pounds, but smaller businesses are understood to have told Mr Kwarteng’s officials that it was an ‘exercise in control’ by Microsoft to avoid open competition.

Microsoft is already being investigated by the watchdog, the Competition and Markets Authority, over its plan to acquire Nuance, a £12 billion voice-recognition platform widely used in the NHS.

A source said: ‘This looks like “NHSwashing” to rival companies – gaining lucrative leverage over health infrastructure under the guise of charity.’

The ‘productivity app’ Slack has filed a formal complaint with the EU Commission, claiming that Microsoft is pushing its Teams software to an uncompetitive degree, squeezing out rivals and monopolising the market.

The source added: ‘Microsoft may have claimed to save the NHS millions of staff hours – but the price will be much higher later on down the line.

‘Their licence renewals will not only be incredibly expensive, but it will be too late to find a system that is cheaper and, frankly, better. This “NHSwashing” is a useful distraction, but the Microsoft antitrust case is growing.’

A Business Department source confirmed Mr Kwarteng’s inquiry.

Microsoft said: ‘We won’t be able to comment as it’s such a preliminary conversation between competitors and the department.’