“Microsoft is trying to force customers into using its cloud computing service Azure and restricting competition in the sector,” Stasi said. “This action reflects an abuse of its dominant market position.”
Background and Legal Proceedings
The class action is part of a broader legal challenge against Microsoft, mirroring similar proceedings initiated by Alexander Wolfson, a former barrister, who has been working on behalf of U.K. organizations that purchased Microsoft licenses. His earlier multibillion-pound collective proceedings aim to hold Microsoft accountable for its licensing practices.
Stasi’s opt-out collective action is available to all U.K. businesses that purchased Windows Server licenses through Amazon Web Services (AWS), Google Cloud Platform, and Alibaba Cloud. The case centers on allegations that Microsoft uses its dominant position in the market to manipulate pricing in favor of Azure.
Concerns About Microsoft’s Market Power
The U.K.’s Competition and Markets Authority (CMA) has previously raised concerns about Microsoft’s dominance in the cloud computing space. In September 2023, the CMA reported that Microsoft holds a market share of 70 to 80% in desktop operating systems, making it one of the most influential players in the software industry.
