Microsoft is facing a £2.1 billion lawsuit in the UK, accused of overcharging thousands of British businesses for using Windows Server software on cloud computing services offered by Amazon, Google, and Alibaba. The allegations were presented at a pivotal hearing before London’s Competition Appeal Tribunal. Regulators in Britain, Europe, and the United States are independently scrutinising Microsoft’s cloud computing practices, among others. Microsoft is a multinational technology corporation that develops, licenses, and supports a range of software products and services. Its best-known products are the Microsoft Windows operating system, the Microsoft Office suite, and the Internet Explorer and Edge web browsers.
Competition lawyer Maria Luisa Stasi is representing nearly 60,000 businesses, arguing that Microsoft inflates the cost of using Windows Server on competing cloud platforms compared to its own Azure service. Stasi is seeking certification from the tribunal to proceed with the case. Microsoft contends that Stasi’s case lacks a clear framework for calculating alleged losses and should be dismissed.
Sarah Ford, Stasi’s lawyer, told the tribunal that Microsoft imposes higher prices on businesses that do not use Azure, making it a more economical choice than Amazon’s AWS or Google Cloud Platform. Ford also claimed that Microsoft diminishes the Windows Server user experience on rival platforms as part of a strategy to exploit its dominant position in the cloud computing market.
Microsoft defends its vertically integrated business model, arguing that using Windows Server as an input for Azure while also licensing it to competitors ultimately benefits competition. However, a UK Competition and Markets Authority inquiry group stated in July that Microsoft’s licensing practices reduced competition by disadvantaging AWS and Google. Microsoft responded that the report disregarded the dynamic and competitive nature of the cloud market.
