Microsoft faces $1.27 billion legal action

Microsoft is facing a legal claim of 1 billion Euros ($1.27 billion) from UK businesses, accusing the tech giant of overcharging firms for access to its products.

The case, filed with the Competition Appeal Tribunal, alleges that UK businesses using rival cloud platforms, such as Amazon Web Services (AWS), Google Cloud, and Alibaba Cloud, were charged higher licensing fees for Microsoft’s Windows Server compared to those using its own Azure cloud service.

The claim, which seeks compensation for over a billion Euros in alleged overcharges, also accuses Microsoft of using anti-competitive tactics to pressure customers into adopting its own cloud service, Azure, rather than using competitors.

The lawsuit was filed by Dr. Maria Luisa Stasi, a digital markets regulation and policy expert, along with the law firm Scott+Scott.

It is a collective action representing all UK businesses that purchased Windows Server licenses through rival cloud platforms.

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“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,” said Dr. Stasi.

She argued that Microsoft’s actions are designed to drive customers towards Azure and reduce competition in the sector.

James Hain-Cole, a partner at Scott+Scott UK, highlighted the importance of collective actions, noting, “Dr. Stasi’s case against Microsoft aims to hold the company accountable for its conduct that impacts businesses and organisations across the UK economy.”

Microsoft has been approached for comment on the matter.