Microsoft is facing a lawsuit in the UK over allegations that it has imposed higher licensing fees for businesses using its Windows Server software in conjunction with cloud computing services from competitors like Amazon, Google, and Alibaba. The lawsuit, filed by competition lawyer Maria Luisa Stasi at the Competition Appeal Tribunal, claims that British businesses could collectively be owed over £1 billion (approximately $1.27 billion) in compensation.
According to Stasi, Microsoft’s practices punish UK businesses for opting for rival cloud services by forcing them into paying more for Windows Server licenses. "By doing so, Microsoft is trying to force customers into using its cloud computing service Azure and restricting competition in the sector," Stasi stated.
This lawsuit comes amidst a broader investigation by Britain’s competition regulator into the cloud computing market, dominated by Amazon’s AWS, Microsoft’s Azure, and Google Cloud Platform. The inquiry is examining Microsoft’s licensing practices for its products like Windows Server and Microsoft 365.
Since the introduction of new licensing fees in 2020, which reportedly incentivized customers to use Azure, Microsoft has gained customers at a notably higher rate compared to other providers. Additionally, the U.S. Federal Trade Commission has started its own antitrust investigation into Microsoft, focusing on potential abuses of market power in cloud computing while exploring claims that it may be imposing punitive licensing terms to dissuade customers from migrating to other platforms.
For more information, you can view the data from the Competition and Markets Authority.
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