U.K. lawsuit targets Microsoft for alleged anti-competitive practices in cloud computing
A U.K. competition class-action style lawsuit has been filed against Microsoft, seeking £1 billion in damages. The lawsuit revolves around accusations that Microsoft charged higher fees to businesses and organizations using rival cloud computing platforms such as Amazon’s AWS, Google Cloud Platform (GCP), and Alibaba Cloud for licensing Windows Server.
The litigation, filed in the U.K.’s Competition Appeal Tribunal, comes amidst increasing scrutiny on cloud computing practices. Recent reports suggest that the U.S. Federal Trade Commission is also investigating Microsoft for antitrust violations, including its software licensing and cloud computing business.
In Europe, the U.K.’s Competition and Markets Authority (CMA) has launched a market investigation into cloud computing practices, following concerns raised in a study conducted by the communications regulator Ofcom. This investigation is ongoing, with the CMA expected to report its findings next year.
Microsoft has previously settled similar complaints in Europe, including a €20 million settlement with the cloud services trade association CISPE, closing an EU antitrust complaint filed in November 2022.
The U.K. lawsuit is being funded by Litigation Capital Management, with Dr. Maria Luisa Stasi leading the case on behalf of thousands of local businesses and organizations allegedly overcharged for using Windows Server. Stasi aims to challenge Microsoft’s anti-competitive behavior and seek compensation for those affected.
U.K. customers of Microsoft are automatically included in the lawsuit, with the option to opt out if they choose. More information about the lawsuit can be found on the claim website.
Microsoft has been contacted for a response to the allegations made in the lawsuit.
