Microsoft was hit with a class action on Tuesday, totaling more than £1 billion ($1.3 billion), filed on behalf of thousands of U.K. businesses. The lawsuit claims that Microsoft overcharged for licensing fees related to its Windows Server, a key software used in cloud computing.
The legal action, filed at the Competition Appeal Tribunal (CAT), alleges that businesses using third-party platforms, such as Amazon, Google, and Alibaba, were charged higher licensing fees for Windows Server compared to customers using Microsoft’s own Azure cloud service.
Allegations of Anti-Competitive Practices
Maria Luisa Stasi, a regulatory expert and competition lawyer at Article 19, filed the claim on behalf of U.K. businesses. She argued that Microsoft is unfairly punishing companies for using services like Google, Amazon, and Alibaba by imposing higher fees. Stasi stated that Microsoft’s pricing strategy effectively forces customers into using its own cloud platform, Azure, thereby restricting competition in the sector.