Microsoft Hit With £1B UK Antitrust Lawsuit Over Alleged Cloud Fee Abuses
Microsoft is facing a major class-action style lawsuit in the UK, with claimants seeking £1 billion (~$1.25 billion) in damages over alleged anti-competitive cloud licensing practices. The case, filed in the UK’s Competition Appeal Tribunal, accuses Microsoft of charging unfair fees to businesses using rival cloud platforms.
Key Allegations in the Lawsuit
- Discriminatory Pricing: The suit claims Microsoft charged higher Windows Server licensing fees to customers of AWS, Google Cloud, and Alibaba Cloud compared to Azure users
- Anti-Competitive Behavior: Plaintiffs allege Microsoft used these pricing structures to push customers toward its Azure cloud platform
- UK Business Impact: The action represents thousands of UK organizations allegedly overcharged for Microsoft software on non-Azure clouds
Global Regulatory Context
This lawsuit arrives amid growing global scrutiny of cloud computing practices:
- US Investigation: The FTC recently launched an antitrust probe into Microsoft’s cloud and licensing businesses
- UK Market Study: The CMA is currently investigating cloud market competition after Ofcom flagged concerns about Microsoft and Amazon’s practices
- EU Precedent: Microsoft previously settled similar EU antitrust complaints, paying tens of millions in settlements
About the UK Legal Action
The case is being spearheaded by Dr. Maria Luisa Stasi, a competition law expert, with funding from litigation finance firm LCM. Key details include:
- Opt-Out Basis: UK businesses are automatically included unless they actively opt out
- No Cost to Join: Participants bear no legal costs, only potential upside from any settlement or judgment
- Claim Website: ukcloudclaim.com provides additional information for affected businesses
Dr. Stasi stated: “Microsoft is punishing UK businesses for using compe***** clouds by forcing them to pay premium licensing fees. This lawsuit aims to challenge these anti-competitive practices and recover overcharges.”
What’s Next?
While the CMA’s cloud market investigation continues, this private lawsuit moves forward independently. Microsoft has yet to publicly respond to the allegations. The case highlights ongoing tensions in cloud computing markets as regulators worldwide examine potential anti-competitive practices among tech giants.
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