Microsoft is in the crosshairs of a British class action-style lawsuit seeking £1 billion (about $1.25 billion at current exchange rates) in damages. At the center are allegations related to fees the software giant charged companies and other organizations for licensing Windows Server when they were customers of competing cloud computing platforms.


The lawsuit, filed Tuesday with the U.K. Competition Appeal Tribunal, alleges that customers of Amazon’s AWS, Google Cloud Platform (GCP) and Alibaba Cloud had to pay higher fees to use Microsoft’s software compared to customers of its own Azure cloud computing service. .


The trial takes place against the backdrop of increasing competitive complaints and research on cloud computing in recent years.


Just last week, Reuters reported that the US Federal Trade Commission had opened a broad antitrust investigation into Microsoft, including its software licensing and cloud computing activities.


Europe has also drawn attention to the practices of cloud computing giants. Back inside October 2023the UK Competition and Markets Authority (CMA) has launched a market investigation into cloud computing following a referral by communications regulator Ofcom, following its own investigation. April 2023 study which had flagged concerns about the market – with particular concerns expressed about the practices of Amazon and Microsoft.


The CMA’s investigation remains ongoing after the watchdog extended the statutory deadline this Septemberso no reporting is expected until next year. But the litigants apparently aren’t waiting for the verdict on Microsoft’s discounts before filing suit.


EU complaint


The tech giant has already paid “tens of millions in settlements” for the same practices in Europe, they suggest – pointing to a settlement In July, Microsoft made agreements with industry organization CISPE for cloud services (reportedly worth €20 million), which is closed an antitrust complaint from the EU submitted November 2022.


The smell of a financial settlement can quickly bring dollar signs into the eyes of litigation funders, so the CISPE settlement likely helped advance the UK claim. Although it is also notable how much higher the total damages amount is compared to the amount Microsoft reportedly paid to settle the EU complaint.


The UK lawsuit is being funded by LCM Funding UK Limited, the UK office of international dispute finance provider Litigation Capital Management (LCM).


The billion-pound British lawsuit was filed by Dr. Maria Luisa Stasi, expert in competition law and digital markets, on behalf of “thousands” of local companies and organizations that have been overcharged for using Windows Server, according to the class action. Thanks to the financing agreement with LCM, it assumes all costs (and therefore the risk) of the lawsuit.


Luisa Stasi said in a statement: “Simply put, Microsoft is punishing British companies and organizations for using Google, Amazon and Alibaba for cloud computing by forcing them to pay more money for Windows Server. By doing this, Microsoft is trying to force customers to use its cloud computing service Azure and limit competition in the sector.”


“This lawsuit aims to challenge Microsoft’s anti-competitive behavior, push them to reveal exactly how many companies in Britain have been illegally penalized, and return the money to organizations that have been unfairly overcharged.” , she added.


Microsoft customers in the UK are included on an opt-out basis (meaning they are automatically included in the promotion unless they actively choose to exclude themselves). As mentioned above, there is no cost to participate in the lawsuit – with only the potential benefit of winning damages if the lawsuit prevails (or Microsoft settles). Entities seeking more information about the lawsuit can contact the claims website.


Microsoft has been contacted for comment on the lawsuit.



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Nebraska judge’s ruling edges the state closer to legalizing medical marijuana - Toronto Star
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Nebraska voters decision to legalize medical marijuana will stand - KETV
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Nebraska Judge Dismisses Legal Challenge to Medical Marijuana Initiatives Approved by Voters
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