A major legal claim targets Microsoft for its cloud software pricing in the UK.
- Microsoft is accused of higher charges for its software when used with rival cloud services.
- Thousands of UK businesses support the claim against Microsoft’s pricing practices.
- The lawsuit aims to recuperate overcharged fees to affected organisations.
- Microsoft’s conduct is under scrutiny by multiple entities, including the CMA.
Microsoft is currently under legal scrutiny in the United Kingdom due to allegations of unfair pricing practices concerning its cloud software. The claim, filed with the Competition Appeal Tribunal, accuses the technology company of imposing higher fees on customers who use Microsoft’s products, such as Windows Server, with competing cloud services instead of its own Azure platform.
The allegations have been brought forward by Dr Maria Luisa Stasi alongside the law firm Scott+Scott, representing thousands of UK businesses. They argue that Microsoft is effectively penalising customers for choosing services like Amazon Web Services and Google Cloud over Azure. Dr Stasi states, “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.”
The aim of the lawsuit is to address what is perceived as Microsoft’s anti-competitive behaviour and to prompt transparency regarding the additional costs incurred by UK businesses. It seeks to have these costs returned to the organisations allegedly unfairly overcharged.
Recent actions by the Competition and Markets Authority (CMA) have added pressure on Microsoft. In September, the CMA’s investigations led Google to criticise Microsoft for significantly impairing customer choice with its licensing tactics in the UK cloud market. Amazon, supporting this claim, noted a “history of cloud providers and customers being unhappy with Microsoft’s conduct,” labelling their practices as unnecessary and straightforward to amend.
The proceedings are set against a backdrop of extensive accusations regarding Microsoft’s actions across the cloud services market, potentially affecting its reputation and operations. Meanwhile, Microsoft has yet to respond publicly to these allegations, according to the available information.
The legal proceedings against Microsoft regarding its cloud software pricing strategies remain unresolved.
