Microsoft is facing a £1bn ($1.26bn) lawsuit in the UK, alleging overcharges for cloud licensing fees.
The claim, filed by competition lawyer Dr Maria Luisa Stasi, targets fees charged to UK businesses and organisations for using Microsoft’s Windows Server software on rival cloud platforms.
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The lawsuit, filed with the UK Competition Appeal Tribunal, alleges that the tech giant imposed higher licensing costs on companies using competing cloud services such as Amazon Web Services (AWS), Google Cloud Platform, and Alibaba Cloud.
The claim contends this practice pressured organisations to shift to Microsoft’s own Azure cloud platform.
The collective action, an “opt-out” suit, represents all UK entities using Windows Server on non-Microsoft cloud services and asserts they were overcharged.
The claim argues that the company leveraged its dominant market position in server operating systems to distort competition by charging inflated fees.
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By GlobalDataDr Stasi said: “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.
“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 much businesses in the UK have been illegally penalised, and return the money to organisations that have been unfairly overcharged.”
The case aligns with ongoing regulatory scrutiny of the company’s cloud practices.
The UK’s communications regulator, Ofcom, referred Microsoft and others to the Competition and Markets Authority (CMA) for investigation, citing concerns about licensing practices.
The CMA is expected to release its findings in July 2025.
In the European Union, Microsoft recently settled an antitrust complaint with a €20m ($21m) payment to cloud competitors.
Additionally, the US Federal Trade Commission (FTC) launched an antitrust investigation into the company’s licensing and cloud business.
Microsoft, which reported revenues nearing £185bn in 2024, has not publicly commented on the lawsuit.
