Microsoft being sued for £1.7 billion over ‘abusing position’ in cloud computing

Microsoft is facing a £1.7 billion collective action lawsuit in the UK over allegations of abusing its dominant position in cloud computing. The Competition Appeal Tribunal has allowed the case to proceed to trial, granting a Collective Proceedings Order (CPO) on an opt-out basis. More than 59,000 UK businesses and organisations are involved, claiming they were overcharged for using Windows Server on rival cloud platforms. The tribunal ruled that the claim has a real prospect of success, marking a significant step forward for the plaintiffs. The case centers on Microsoft’s licensing practices related to its Windows Server operating system and cloud services, particularly its Azure platform. The claimants argue that Microsoft’s conduct has financially harmed both public and private sector organisations by imposing unfair charges when Windows Server was used on competing cloud services. Maria Luisa Stasi, a lawyer and digital markets regulation expert leading the case, emphasized the importance of the ruling for ensuring innovation and openness in a critical economic sector. She expressed determination to prepare for trial and secure compensation for the affected businesses. Microsoft has stated its intention to appeal the tribunal’s decision, arguing that the ruling did not adhere to recent Supreme Court precedents on class action certifications. The company also disputes the underlying allegations, noting that the tribunal’s decision does not constitute a final judgment on the claims. Meanwhile, UK businesses that may have used Windows Server on rival cloud services are being invited to register for potential compensation through a dedicated website. This case highlights ongoing scrutiny of major technology firms’ market practices, particularly in cloud computing, where licensing and interoperability issues have significant financial and competitive implications. The outcome could influence how dominant players structure their licensing agreements and affect the broader cloud services market in the UK and beyond.