By Nermeen Nabil Khear 
A serious authorized case has been launched towards Microsoft within the UK, with claims that the know-how large overcharged 1000’s of companies and organisations utilizing rival cloud computing platforms. The lawsuit, filed with the UK’s Competitors Enchantment Tribunal (CAT), seeks over £1bn in compensation. It alleges that Microsoft exploited its market dominance to impose greater licensing charges for Home windows Server software program on customers of Amazon Net Providers (AWS), Google Cloud Platform (GCP), and Alibaba Cloud.
The declare, led by competitors lawyer Maria Luisa Stasi, accuses Microsoft of penalising companies that opted for its rivals’ cloud companies by inflating licensing prices. The case represents all affected UK organisations on an “opt-out” foundation, that means that each one doubtlessly overcharged companies will robotically be included except they select to choose out. “Put merely, Microsoft is punishing UK companies and organisations for utilizing Google, Amazon and Alibaba for cloud computing by forcing them to pay more cash for Home windows Server, mentioned Stasi. “By doing so, Microsoft is making an attempt to pressure prospects into utilizing its cloud computing service Azure and limiting competitors within the sector.
Microsoft allegedly launched adjustments to its licensing insurance policies in 2020, making it costlier to make use of Home windows Server on rival cloud platforms. The declare contends that this technique was designed to push prospects in direction of Microsoft’s personal cloud service, Azure, by making a pricing drawback for its rivals. The lawsuit argues this behaviour not solely stifles competitors but additionally locations undue monetary pressure on UK companies.
“Collective actions stage the enjoying discipline and permit organisations to battle again towards anti-competitive behaviour from a number of the greatest firms on the planet,” mentioned James Hain-Cole, a companion at Scott+Scott, the authorized agency representing the claimants. He additionally said: “Dr Stasi’s case towards Microsoft goals to do precisely that.”
The alleged overcharges have reportedly hit small companies significantly laborious. Many UK firms, already grappling with rising prices, face extra monetary strain attributable to greater cloud computing charges. Trade surveys recommend cloud computing prices for small companies have risen sharply, with IT leaders reporting a 14% enhance over the previous 12 months. The authorized agency highlighted a hypothetical instance, stating that, a small UK enterprise with 10 staff utilizing AWS for cloud companies would face significantly greater prices to license Home windows Server in comparison with utilizing Microsoft Azure.
Regulatory investigations and settlements
The case follows elevated scrutiny of Microsoft’s cloud licensing practices. Ofcom, the UK communications regulator, just lately raised considerations that Microsoft and different main cloud suppliers could also be distorting competitors within the cloud market. The Competitors and Markets Authority (CMA) is anticipated to ship its findings from an ongoing investigation into these practices by July 2025.
Redmond’s dominance within the working techniques market has been highlighted within the investigations. In 2024, the corporate reported file revenues of practically £185bn, with a market share of 70-80% in desktop working techniques, in response to the CMA. This dominance is alleged to have been leveraged to realize an unfair benefit within the cloud computing sector.
Microsoft has confronted related challenges in Europe, the place it paid €20m to settle allegations of anti-competitive behaviour from a gaggle of cloud computing rivals. In the meantime, within the US, the Federal Commerce Fee (FTC) launched an expansive antitrust investigation final week into Microsoft, together with its loud computing, software program licensing, cybersecurity, and synthetic intelligence (AI) companies.
