Thousands of UK businesses could receive payouts if legal claims against tech giant Microsoft are successful.
Regulation expert Dr. Maria Luisa Stacey has accused tech giants of overcharging for Windows server software used in cloud computing.
She is seeking more than £1bn in compensation from UK businesses.
The BBC has contacted Microsoft for comment.
The case has been brought on an “opt-out” basis – meaning that all UK organizations are being represented unless they choose to be.
And it is the latest class action lawsuit to be filed at the UK’s Competition Appeal Tribunal against major tech firms. Facebook, Googleand Mobile phone companies Among those facing action in other claims.
This type of claim is still relatively new, having been introduced in the UK in 2015, so there is little precedent to indicate how likely it is to succeed – but it is unlikely any results will emerge. I will probably be many years from now.
It comes as the UK’s Competition and Markets Authority is investigating the cloud computing industry in the UK.
Broadly speaking, cloud computing refers to data stored online, which can be accessed anytime anywhere.
It’s a key part of the way the modern world works, from using the cloud to storing huge amounts of data to streaming videos and music.
Cloud computing is also now an important part of how many businesses operate.
Typically, this means either using Microsoft’s Azure platform or making agreements with alternative providers such as Amazon and Google – who can then license the software from Microsoft.
This licensing element has led to controversy, with Google telling the CMA in June: “We believe that Microsoft’s licensing practices increase competitors’ costs and competitors’ ability to compete for a significant proportion of customer demand.” Weakening.”
Microsoft has vehemently denied this, opening its response to the probe in July by saying its licensing terms “do not significantly increase the costs of cloud competitors”.
Legal action filed today claims “several thousand” UK businesses could be affected.
It alleges that small firms are “hit particularly hard”, pointing out that Figures from the Office for National Statistics show that. More businesses closed than started in 2022.
“Simply put, Microsoft is punishing UK businesses and organizations for using Google, Amazon and Alibaba for cloud computing by forcing them to pay more for Windows Server,” Ms Stasi said. said
“By doing so, Microsoft is trying to force customers to use its cloud computing service Azure and limit competition in the sector.
“The aim of this lawsuit is to challenge Microsoft’s anti-competitive behaviour, to force them to reveal how many businesses in the UK have been unlawfully fined, and to return money to organizations that have been unfairly fined. Fairly overcharged.”