- Microsoft has been accused of raising software prices when customers use alternative clouds
- The company could have to pay more than £1 billion in compensation
- British SMEs would be disproportionately affected
As 2024 draws to a close, Microsoft’s streak with antitrust regulators continues as the company faces a class-action lawsuit in Britain over the prices of its software.
If successful, thousands of British companies could be eligible for a share of the more than £1 billion fine (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 more than £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 has exploited its dominant position by imposing high licensing fees on customers using cloud services from rival companies such as Amazon, Google and Alibaba.
She summarized: “Microsoft is punishing UK companies and organizations for using Google, Amazon and Alibaba for cloud computing by forcing them to pay more money for Windows Server.”
Stasi accused Microsoft of “forcing customers to use its cloud computing service Azure and limiting competition in the sector.”
The case also indicates that Microsoft’s unfair software prices are impacting small businesses more than established ones, with ONS figures highlighting that more SMEs closed than started in 2022.
Stasi added: “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 have been charged.”
This isn’t the first time Microsoft has been criticized for its software pricing strategy. The company is also accused of imposing technical restrictions intended to make it challenging (and expensive) to switch providers. For these reasons, Microsoft has been on the lips of American, European and British regulators for months.
Ny Breaking asked Microsoft for comment on the legal action it now faces in Britain, but the company did not immediately respond.