Microsoft is facing a major legal battle in the United Kingdom over allegations of restricting competition in the cloud computing market and imposing excessive fees on customers. The class action lawsuit, seeking around £1.7 billion in damages, represents tens of thousands of businesses.
According to AFP and Reuters, the case has been brought by digital policy expert Maria Luisa Stasi on behalf of approximately 59,000 UK companies and organizations. The lawsuit alleges that Microsoft structured its software licensing terms in a way that made it more expensive for customers to run its Windows Server software on rival cloud platforms.
This, claimants argue, distorted fair competition in the rapidly growing cloud services market. The UK’s Competition Appeal Tribunal has allowed the case to proceed, stating that it has a realistic prospect of success. Judges noted that the allegations—centering on the company’s dominant position in the server operating systems market—warrant detailed examination, particularly regarding their impact on competition in cloud computing. If successful, the compensation could range between £1.7 billion and £2.1 billion, according to the claim. Microsoft has denied the allegations and said it intends to appeal, emphasizing that the tribunal’s decision is not final. Meanwhile, regulators in both the UK and the European Union are also scrutinizing the company’s cloud licensing practices amid broader concerns over competition in the sector.