Microsoft is facing a £1bn class action lawsuit in the UK over alleged overpricing of its Windows Server software. This software is commonly used in cloud computing. Regulation expert Dr. Maria Luisa Stasi claims Microsoft charged UK businesses unfairly for the software. She is seeking compensation for thousands of affected companies.

Legal Case and Impact on UK Businesses

The lawsuit has been filed on an “opt-out” basis, meaning all UK organizations are represented unless they choose not to be. If successful, the case could result in payouts for many businesses. This is the latest in a series of class action lawsuits targeting big tech companies like Facebook, Google, and others.

The UK’s Competition and Markets Authority is investigating the cloud computing industry, with a focus on Microsoft’s licensing practices. Cloud computing allows businesses to store and access data online, a critical part of modern operations. Microsoft’s cloud platform, Azure, competes with services from Amazon and Google.

Licensing Controversy

The controversy centers around Microsoft’s licensing practices. Google claims Microsoft’s terms increase costs for rivals and limit competition. Microsoft denies this, stating that its licensing terms do not harm competitors.

Dr. Stasi argues that small UK businesses have been hit hardest by these pricing practices, especially as more companies closed than opened in 2022. She accuses Microsoft of forcing companies to pay more for Windows Server to push them toward using Azure, its cloud service.

The lawsuit aims to challenge Microsoft’s actions and force the company to return the money it allegedly overcharged.