Microsoft faces massive class action payouts in cloud computing pricing case
Microsoft could be hit with over £1 billion ($1.27 billion) in charges if a huge class action case brought against the firm by UK businesses succeeds.
The case centers around Windows Server, with Microsoft being accused of overcharging customers for the software. The licensing terms of the associated Azure, the lawsuit says, mean that users are channelled towards using Microsoft’s cloud offering because it pushes up the prices of services from rivals like Google and Amazon.
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The case, in which Microsoft is accused of anticompetitive behavior, has been started by Dr Maria Luisa Stasi but she is representing many, many companies. In fact, the case is a little strange in that all UK businesses are represented by it by default, unless they opt out for some reason.
In what is likely to be a very lengthy legal battle, compensation of over £1 billion is being sought. Dr Stasi says:
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 adds: “This lawsuit aims to challenge Microsoft’s anti-competitive behaviour, push them to reveal exactly how much businesses in the UK have been illegally penalised, and return the money to organisations that have been unfairly overcharged.”
The case builds on claims made earlier in the year by Google that Microsoft pushes up rivals’ costs. Microsoft denies the charges levelled against it.
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