Microsoft £1bn Class Action Case in UK Over Software Prices – Update

is currently facing a massive £1bn class action case in the UK over allegations of overcharging businesses for its Windows Server software. This legal claim, brought by regulation expert Dr. Maria Luisa Stasi, could potentially result in payouts for thousands of UK businesses if successful.

The case has been filed on an “opt-out” basis, which means that UK organizations are automatically included unless they choose to opt out. This is just the latest in a series of class action lawsuits being filed against big tech firms in the UK, with Facebook, Google, and mobile phone companies also facing similar legal challenges.

The Competition Appeal Tribunal in the UK will ultimately decide the outcome of this case, which could take several years to reach a resolution. These types of claims are still relatively new in the UK, having been introduced in 2015, so there is little precedence to indicate how successful they may be.

Cloud computing, which involves storing data online to access it from anywhere, is a crucial part of modern business operations. Many companies rely on platforms like Microsoft’s Azure or services from other providers like Amazon and Google, which may license software from Microsoft.

The core of the legal action against Microsoft revolves around allegations of anti-competitive behavior in licensing practices. The lawsuit claims that many UK businesses, especially small firms, have been unfairly penalized by Microsoft’s pricing structures, potentially leading to the closure of more businesses than new ones starting up.

Dr. Stasi accuses Microsoft of trying to push businesses toward using its cloud computing service, Azure, by charging higher prices for Windows Server if they use competitors like Google or Amazon. The goal of the lawsuit is to challenge Microsoft’s practices, bring transparency to the extent of overcharging, and return the money to affected organizations.

Microsoft has denied these allegations, stating that their licensing terms do not significantly impact competition in the cloud computing sector. The UK’s Competition and Markets Authority is currently investigating the cloud computing industry to determine the validity of these claims and ensure fair competition in the market.