Microsoft Faces £1 Billion UK Lawsuit Over Cloud Licensing Practices

The tech giant is accused of overcharging businesses using rival cloud platforms, allegedly restricting competition and driving customers to its Azure service.

Competition lawyer Dr. Maria Luisa Stasi has filed a £1 billion class-action lawsuit in the UK, alleging Microsoft overcharged businesses for licensing Windows Server on rival cloud platforms such as AWS, Google Cloud, and Alibaba Cloud.
The lawsuit claims Microsoft's pricing practices unfairly penalize businesses that choose competing cloud providers, pushing them toward its own Azure platform to save costs.
The case represents thousands of UK businesses and organizations under an 'opt-out' collective action, meaning all eligible businesses are included unless they choose otherwise.
The UK's Competition and Markets Authority (CMA) is conducting a broader investigation into anti-competitive practices in the cloud computing market, with provisional findings expected in January 2025.
Microsoft has faced similar complaints in Europe and the US, including a recent $21 million settlement in the EU over unfair cloud licensing practices.