Microsoft has been accused of unfairly overcharging customers of rival cloud companies in a UK lawsuit claiming damages of more than £1 billion.
The lawsuit alleges customers using Amazon Web Services (AWS), Google Cloud Platform or Alibaba Cloud — all key competitors to Microsoft’s Azure cloud — are forced to pay more to license the tech giant’s cloud-based Windows Server software on rivals’ infrastructure.
Microsoft offers a cheaper price to firms running Windows Server on Azure than on direct competitors like AWS, Google’s cloud or Alibaba Cloud.
The lawsuit argues firms running the widely-used server software are essentially being overcharged to use alternative cloud computing solutions.
It adds Microsoft leverages its dominant market position in cloud-based server operating systems by extracting higher prices and inducing customers into moving to Azure.
Claimant Maria Luisa Stasi, a competition lawyer, is seeking more than £1 billion in compensation for firms affected.
Stasi, who is head of law and policy for digital rights advocacy group Article19, said in a statement:
“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,”
“By doing so, Microsoft is trying to force customers into using its cloud computing service Azure and restricting competition in the sector.”
She added the lawsuit “aims to challenge Microsoft’s anti-competitive behaviour, push them to reveal exactly how much businesses in the UK have been illegally penalized, and return the money to organizations that have been unfairly overcharged.”
Thousands of UK businesses and organizations are represented in the lawsuit, which is an “opt-out” collective action. That means that any company potentially affected is automatically counted and can receive a payout if Microsoft loses.
Microsoft declined to comment on the lawsuit.
