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A Regulation expert by the name Dr Maria Luisa Stasi is alleging the tech giant Microsoft overcharged companies for its Window Server software, used in cloud computing. She is seeking compensation of over £1bn on behalf of UK businesses. Thousands of UK businesses could receive payouts if the legal claim filed against tech giant Microsoft is successful.

 

The case has been brought on an "opt-out" basis - meaning UK organisations are all being represented to begin with unless they wish not to be. And it is the latest class action lawsuit to be filed at the UK's Competition Appeal Tribunal against big tech firms, with Facebook, Google, and mobile phone firms amongst those facing action in other claims.

It comes as the UK's Competition and Markets Authority investigates the cloud computing industry in the UK. Cloud computing means either using Microsoft's Azure platform or entering into agreements with alternative providers like Amazon and Google - who then may licence software from Microsoft. This licensing element is what has caused controversy, with Google telling the CMA in June:

"We believe Microsoft’s licensing practices both raise rivals’ costs and weaken rivals’ ability to compete for a significant proportion of customer demand."

Microsoft has strongly denied this, opening its response to the investigation in July by stating that its licensing terms "do not meaningfully raise cloud rivals' costs".

The legal action filed today claims that "many thousands" of UK businesses may have been affected. It alleges that small firms "are hit particularly hard", pointing to figures from the Office for National Statistics which indicate more businesses closed down than started up in 2022.

“Put simply, 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," said Ms Stasi.

"By doing so, Microsoft is trying to force customers into using its cloud computing service Azure and restricting competition in the sector.

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.

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