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UK Businesses File £1 Billion Lawsuit Against Microsoft Over Licensing Fees

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Microsoft is facing a £1 billion legal action from UK businesses over allegations of overcharging for access to its Windows Server software.

The claim, submitted to the Competition Appeal Tribunal by Dr. Maria Luisa Stasi, a digital markets regulation expert, and law firm Scott+Scott, accuses Microsoft of anti-competitive practices. It alleges that businesses using rival cloud platforms, such as Amazon Web Services (AWS), Google Cloud, and Alibaba Cloud, were charged higher licensing fees than those using Microsoft’s Azure platform.

The lawsuit represents UK organisations that purchased Windows Server licences through non-Microsoft cloud providers, forming an “opt-out” collective action to recover over £1 billion in compensation.

“Microsoft is punishing UK businesses for choosing competitors like Google, Amazon, and Alibaba by imposing inflated fees for Windows Server,” Dr. Stasi stated. “This lawsuit seeks to expose their anti-competitive tactics, quantify the impact on UK organisations, and secure compensation for affected businesses.”

James Hain-Cole, partner at Scott+Scott UK, emphasized the importance of the collective action, saying, “These cases empower organisations to challenge anti-competitive behaviour by global giants. Dr. Stasi’s lawsuit aims to secure justice for businesses across the UK economy.”

Microsoft has yet to respond to the allegations.

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