Microsoft is facing a £1 billion legal claim from UK businesses over allegations of overcharging for product access.  

The complaint, filed with the Competition Appeal Tribunal, accuses Microsoft of imposing higher licensing fees on customers using rival cloud platforms like Amazon AWS, Google Cloud, and Alibaba Cloud to access Windows Server.  

It claims that UK businesses are collectively owed over £1 billion in compensation and accuses Microsoft of anti-competitive practices aimed at pushing customers toward its Azure cloud service.  

The lawsuit, led by digital markets expert Dr. Maria Luisa Stasi and law firm Scott+Scott, represents all UK businesses that purchased Windows Server licenses through competing cloud platforms in an “opt-out” collective action. 

Collective actions level the playing field and allow organisations to fight back against anti-competitive behaviour from some of the biggest companies in the world

James Hain-Cole

“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,” Dr Stasi said.

“By doing so, Microsoft is trying to force customers into using its cloud computing service Azure and restricting competition in the sector.

“This lawsuit aims to challenge Microsoft’s anti-competitive behaviour, push them to reveal exactly how much businesses in the UK have been illegally penalised, and return the money to organisations that have been unfairly overcharged.”

James Hain-Cole, partner at Scott+Scott UK, said: ““Collective actions level the playing field and allow organisations to fight back against anti-competitive behaviour from some of the biggest companies in the world.

“Dr Stasi’s case against Microsoft aims to do exactly that. We are proud to support her efforts to secure compensation for the class and hold Microsoft to account for its conduct that affects businesses and organisations across the UK economy.”