- Microsoft accused of raising UK software prices when customers use alternative clouds
- The company could have to pay out more than £1 billion in compensation
- British SMBs were said to have been disproportionately affected
As 2024 draws to a close, Microsoft’s recent streak with antitrust regulators continues as the company faces a class action lawsuit in the UK over the prices of its software.
If successful, thousands of British businesses could be eligible for a slice of a fine exceeding £1 billion (via Reuters).
The complaint accuses Microsoft of overcharging companies for its Windows Server software, which is used in cloud computing operations.
Microsoft could be fined over £1 billion
Dr Maria Luisa Stasi, Head of Law and Policy for Digital Markets at ARTICLE 19, and the person responsible for filing the case, claims that Microsoft exploited its dominant position by imposing high licensing fees for customers using cloud services from rival companies like Amazon, Google and Alibaba.
“Microsoft is punishing UK businesses and organisations for using Google, Amazon and Alibaba for cloud computing by forcing them to pay more money for Windows Server," she summarized.
Stasi accused Microsoft of “trying to force customers into using its cloud computing service Azure and restricting competition in the sector.”
The case also indicates Microsoft’s unfair software pricing affects small businesses more than established ones, citing ONS figures highlighting that more SMBs closed than started in 2022.
Stasi added: “This lawsuit aims to challenge Microsoft’s anti-competitive behaviour, push them to reveal exactly how much businesses in the UK have been illegally penalised, and return the money to organisations that have been unfairly overcharged.”
This isn’t the first time that Microsoft has been criticized over its software pricing strategy – the company has also been slated for imposing technical limitations designed to make it challenging (and expensive) to switch providers. Microsoft has been on the lips of American, European and British regulators for these reasons for months.
TechRadar Pro has asked Microsoft to comment on the legal action it now faces in the UK, but the company did not immediately respond.
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