A £1 billion (approximately $1.25 billion) class-action style lawsuit has been filed against Microsoft in the UK, alleging the company overcharged businesses for Windows Server licenses.
The suit, filed Tuesday with the Competition Appeal Tribunal, claims Microsoft charged higher fees to customers using competing cloud platforms like Amazon AWS, Google Cloud Platform, and Alibaba Cloud, compared to those using Microsoft’s own Azure service.
Cloud computing practices have faced increasing scrutiny and competition complaints in recent years, culminating in a new lawsuit against Microsoft. Last week, Reuters reported a broad antitrust investigation of Microsoft by the US Federal Trade Commission, focusing on software licensing and cloud computing.
European regulators have also increased their focus on cloud giants. In October 2023, the UK’s Competition and Markets Authority launched a market investigation into cloud computing, prompted by concerns raised in an April 2023 study by Ofcom, the communications regulator, which specifically highlighted practices by Amazon and Microsoft.
While the UK’s Competition and Markets Authority (CMA) continues its investigation into cloud computing practices, with a report expected next year, litigants are pressing ahead with a lawsuit against Microsoft over its discounting practices.
The plaintiffs point to a €20 million settlement Microsoft reached with the Cloud Infrastructure Services Providers in Europe (CISPE) in July, resolving an EU antitrust complaint filed in November 2022, as evidence that the tech giant has already paid “tens of millions in settlements” over similar practices in Europe.
The CMA extended its investigation deadline in September, but the lawsuit is proceeding regardless of the CMA’s eventual findings.