Microsoft is being accused of overcharging companies for its Windows Server software, used in cloud computing. This case, filed by regulation expert Dr. Maria Luisa Stasi, seeks compensation of over £1bn on behalf of UK businesses.
Class action lawsuit filed against Microsoft
The legal claim is based on an “opt-out” model. This means UK organisations are represented unless they choose not to be. The lawsuit could lead to payouts for thousands of businesses if successful.
It is the latest class action case brought before the UK’s Competition Appeal Tribunal. Facebook, Google, and mobile phone companies have faced similar actions. These types of claims were introduced in the UK in 2015 and remain relatively new.
The outcome of the case is uncertain. It may take years before a decision is reached. The UK’s Competition and Markets Authority (CMA) is also investigating the cloud computing sector.
Cloud computing is vital for modern businesses, allowing them to store and access data online. It is used for various purposes, from data storage to streaming services. Many businesses rely on cloud platforms like Microsoft’s Azure, or alternative providers such as Amazon and Google.
The controversy centers on Microsoft’s software licensing. Google has accused Microsoft of raising rivals’ costs and weakening their competitiveness. Microsoft denies these allegations, asserting that its licensing terms do not impact rivals’ costs.
The lawsuit claims that many UK businesses have been affected, especially smaller companies. Data from the Office for National Statistics shows more businesses closed than opened in 2022.
Dr. Stasi argues that Microsoft is penalising UK firms for using competing cloud services like Google, Amazon, and Alibaba. She believes Microsoft is forcing businesses to pay more for Windows Server and pushing them toward its own Azure service.
The legal action aims to challenge Microsoft’s anti-competitive behaviour. It seeks transparency about the overcharges and demands that the money be returned to UK organisations.