In a David and Goliath-style confrontation, a software reseller has thrown down the gauntlet at Microsoft’s feet, challenging the tech behemoth in a titanic £270 million ($343 million) antitrust lawsuit. The accusation? Microsoft, the Goliath of the tech world, stands accused of employing its colossal might to squash the thriving market for reselling its software licenses.
Microsoft Faces Early Bid Antitrust Fight: ValueLicensing’s Strident Accusation
ValueLicensing, the reseller leading the charge, has made a bold move this Friday. They’ve petitioned the U.K. Competition Appeal Tribunal to nullify a key segment of Microsoft’s defense arsenal – the claim that any alleged anti-competitive actions were “objectively justified.” Like a chess master strategizing their next move, Microsoft counters, steadfast in its denial of any wrongdoing and clinging to its defense that its actions, even if perceived as anti-competitive, were necessary and proportionate steps towards a new era of software subscription models.
The Battle Lines are Drawn: Microsoft’s Justification Under Fire
The drama escalates as ValueLicensing prepares to confront Microsoft’s denial head-on at trial. Their current stratagem? To strip Microsoft of its fallback defenses before the trial even commences. Microsoft’s stance that its actions were “necessary and reasonable” is poised precariously on the edge, as ValueLicensing challenges the tech giant’s ability to substantiate these claims.
A Leader’s Stand: Jonathan Horley’s Unyielding Stance
In a statement that resonates with determination, Jonathan Horley, the founder and managing director of ValueLicensing, asserts that Microsoft has had ample opportunity to fortify its defenses but has faltered, despite clear directives from the tribunal.
A Saga of David vs Goliath Proportions
The latest development is but a chapter in ValueLicensing’s prolonged crusade against Microsoft, a saga that paints a vivid picture of a smaller entity challenging a tech titan. The allegations? That Microsoft has been systematically dismantling the market for pre-owned software in the U.K. and European Economic Area.
Microsoft Faces Early Bid Antitrust Fight: ValueLicensing’s 2021 Crusade
The roots of this epic confrontation trace back to 2021, when ValueLicensing embarked on its legal odyssey, claiming a staggering £270 million in damages. The crux of their argument? Microsoft’s alleged contractual machinations designed to render the resale of licenses virtually impossible.
Microsoft’s Tactical Maneuvers: A Defensive Stance
Microsoft’s U.K. arm, in a nimble attempt to sidestep the lawsuit in April 2022, found itself ensnared by a High Court ruling that tethered it to its Irish and U.S. counterparts. In a counteroffensive in October 2022, Microsoft denied orchestrating a campaign to monopolize licenses, asserting that customers retained the freedom to resell if they chose.
Microsoft Faces Early Bid Antitrust Fight : The Competition Appeal Tribunal
As the legal skirmish intensified, the High Court transferred the case to the specialized arena of the Competition Appeal Tribunal in November 2022.
Microsoft Faces Early Bid Antitrust Fight : Defending Customer Options
A Microsoft spokesperson, in a statement to Law360, defended the company’s actions, framing them as both legal and beneficial. By offering customers the option to transition their licenses to new cloud subscriptions, Microsoft argues that it was enhancing productivity and security, rather than restricting market competition.
The Latest Confrontation: High Court Drama in December
In a recent clash at the High Court, ValueLicensing attempted, but failed, to prevent Microsoft from auditing its records, a right stemming from a 2018 copyright dispute settlement. ValueLicensing’s concern? That Microsoft might exploit this right to gather ammunition for the ongoing tribunal fight. However, the court sided with Microsoft, affirming its right to inspect.
Legal Champions: The Attorneys at the Forefront
ValueLicensing’s legal charge is led by Maya Lester KC and Max Schaefer of Brick Court Chambers, with Charles Fussell & Co. LLP steering the strategy. Microsoft’s defense is marshaled by Robert O’Donoghue KC of Brick Court Chambers, Nikolaus Grubeck and Michael Armitage of Monckton Chambers, and Jaani Riordan of 8 New Square, with CMS Cameron McKenna Nabarro Olswang LLP providing the legal framework.
