Microsoft Faces £1 Billion Class Action in UK Over Alleged Overpricing of Software

Microsoft is at the center of a £1 billion class action lawsuit in the UK, with thousands of businesses potentially in line for compensation. The claim, led by regulation expert Dr. Maria Luisa Stasi, alleges that Microsoft overcharged companies for its Windows Server software, a key tool in cloud computing operations.

• The lawsuit accuses Microsoft of unfair pricing practices, claiming the company leveraged its dominant position to inflate costs for businesses.
• Over £1 billion in damages is being sought on behalf of UK businesses.
• The case is filed on an opt-out basis, meaning all UK businesses using Microsoft’s software are automatically included unless they choose otherwise.

This lawsuit is the latest in a wave of class action cases targeting tech giants in the UK, including Facebook and Google. Such claims, enabled by legislation introduced in 2015, are still relatively novel, and outcomes remain uncertain.

The legal process is expected to take years to resolve, with little precedence available to predict success rates.

The case coincides with an ongoing investigation by the UK’s Competition and Markets Authority (CMA) into the cloud computing sector.

• Cloud services are integral to modern businesses, providing solutions for data storage, software licensing, and streaming services. Microsoft’s Azure, Amazon Web Services, and Google Cloud dominate the sector.
• Google previously raised concerns with the CMA, accusing Microsoft of using restrictive licensing practices that increase costs for competitors and undermine their ability to compete effectively.
• The company has denied these allegations, stating that its licensing terms do not significantly impact rivals’ costs or competitiveness.

If successful, the lawsuit could mark a landmark decision for tech regulation in the UK, reinforcing scrutiny on the practices of dominant players in critical digital infrastructure markets. Businesses across the nation stand to benefit from compensation, with the case also potentially influencing licensing and competition policies in the cloud computing industry.