Microsoft is facing a £1.7 billion class action lawsuit in the United Kingdom over allegations that it abused its dominant market position to overcharge businesses.
The case was filed by Maria Luisa Stasi on behalf of around 59,000 British organisations. It centres on claims that Microsoft imposed higher costs on customers using its Windows Server software when operating on rival cloud platforms.
“For years, Microsoft’s practices have had real financial impact on both public and private organisations,” Stasi said.
The Competition Appeal Tribunal ruled that the case can proceed, stating it has a “reasonable prospect of success.” Judges added: “Microsoft is alleged to be abusing its dominance in the paid server OS market to harm competition in the cloud computing services market.”
If successful, claimants estimate compensation could range between £1.7 billion and £2.1 billion.
Microsoft said it intends to appeal. A spokesperson stated: “We also dispute the underlying allegations by the class representative, and today’s decision makes no final determination on those claims.”
The lawsuit comes amid growing regulatory scrutiny of Microsoft’s cloud practices in both the UK and the European Union.
British regulators are examining whether its licensing rules should qualify as “strategic market status,” a designation that would subject the company to stricter competition requirements.
This case adds to ongoing debates about the power of major tech firms in cloud computing, where licensing and interoperability have become central issues for regulators worldwide.
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