Microsoft is facing a €1 billion ($1.27 billion) collective lawsuit from UK businesses, accusing the tech giant of overcharging for access to its products.
The legal claim, submitted to the UK’s Competition Appeal Tribunal, alleges that businesses using rival cloud platforms such as Amazon Web Services (AWS), Google Cloud Platform, and Alibaba Cloud were subjected to inflated licensing fees to access Microsoft's Windows Server.
The lawsuit, led by digital markets expert Dr. Maria Luisa Stasi and law firm Scott+Scott, contends that Microsoft employed anti-competitive practices to pressure customers into using its Azure cloud services.
If successful, the claim could result in more than €1 billion in compensation for affected UK organisations. The case has been filed as an “opt-out” collective action, meaning all eligible UK businesses are automatically included unless they choose to withdraw.
“Put simply, Microsoft is punishing UK businesses and organisations for using Google, Amazon and Alibaba for cloud computing by forcing them to pay more money for Windows Server,” Stasi said.
“By doing so, Microsoft is trying to force customers into using its cloud computing service Azure and restricting competition in the sector.
“This lawsuit aims to challenge Microsoft’s anti-competitive behaviour, push them to reveal exactly how many businesses in the UK have been illegally penalised, and return the money to organisations that have been unfairly overcharged.”
James Hain-Cole, partner at Scott+Scott UK, said: “Collective actions level the playing field and allow organisations to fight back against anti-competitive behaviour from some of the biggest companies in the world.
“Dr Stasi’s case against Microsoft aims to do exactly that. We are proud to support her efforts to secure compensation for the class and hold Microsoft to account for its conduct that affects businesses and organisations across the UK economy.” #UK Businesses sue Microsoft for $1.27 Billion
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