Microsoft is facing a £1 billion legal claim from UK businesses who accuse the tech giant of overcharging for access to its Windows Server software when used with rival cloud platforms. The legal action, filed at the Competition Appeal Tribunal, asserts that Microsoft’s pricing practices amounted to anti-competitive behavior aimed at coercing customers into using its own Azure cloud services.
Accusations of Punitive Pricing
The claim, spearheaded by digital markets expert Dr. Maria Luisa Stasi and law firm Scott+Scott, alleges that UK businesses have been unfairly penalized for opting to use cloud services from competitors like Amazon Web Services (AWS), Google Cloud Platform, and Alibaba Cloud. These companies are said to have been charged higher licensing fees for Windows Server when used on these rival platforms, with some businesses collectively owed over £1 billion in compensation.
Challenging Anti-Competitive Practices
Dr. Stasi, who filed the claim, criticized Microsoft for using punitive pricing tactics that harm UK businesses. “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,” she stated. The lawsuit aims to hold Microsoft accountable for what the claimants describe as illegal and anti-competitive behavior.
Collective Action for Fairness
The legal action represents all UK businesses that purchased Windows Server licenses via cloud platforms other than Azure. It is an “opt-out” collective action, meaning that businesses affected by the overcharging do not have to individually join the case. According to James Hain-Cole, partner at Scott+Scott, such collective actions provide a critical avenue for businesses to combat anti-competitive practices by major companies like Microsoft.
Implications for UK Businesses
If successful, the claim could see UK businesses compensated for what they allege to be overcharging by Microsoft. It would also potentially force the tech giant to reconsider its pricing and licensing strategies, ensuring a fairer competitive environment in the UK’s cloud computing sector.
For more information, you can read the full article here.