Headlines
Microsoft fights $2.8 billion UK lawsuit over cloud computing licences
Published by Global Banking and Finance Review
Posted on December 11, 2025
2 min readLast updated: January 20, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on December 11, 2025
2 min readLast updated: January 20, 2026
Microsoft is accused of overcharging UK businesses for Windows Server on non-Azure clouds, leading to a $2.8 billion lawsuit. The case highlights competition concerns.
LONDON, Dec 11 (Reuters) - Microsoft was on Thursday accused of overcharging thousands of British businesses to use Windows Server software on cloud computing services provided by Amazon, Google and Alibaba, at a pivotal hearing in a 2.1 billion-pound ($2.81 billion) lawsuit.
Regulators in Britain, Europe and the United States have separately begun examining Microsoft and others' practices in relation to cloud computing.
Competition lawyer Maria Luisa Stasi is bringing the case on behalf of nearly 60,000 businesses that use the Windows Server on rival cloud platforms, arguing Microsoft makes it more expensive than on its own cloud computing service Azure.
Stasi is asking London's Competition Appeal Tribunal to certify the case to proceed, an early step in the proceedings.
Microsoft, however, says Stasi's case does not set out a proper blueprint for how the tribunal will work out any alleged losses and should be thrown out.
MICROSOFT ACCUSED OF 'ABUSIVE STRATEGY'
Stasi's lawyer Sarah Ford told the tribunal that thousands of businesses had been overcharged because Microsoft charges higher prices to those who do not use Azure, making it a cheaper option than Amazon's AWS or the Google Cloud Platform.
She also said that "Microsoft degrades the user experience of Windows Server" on rival platforms, which Ford said was part of "a coherent abusive strategy to leverage Microsoft's dominant position" in the cloud computing market.
Microsoft argues that its vertically integrated business, where it uses Windows Server as an input for Azure while also licensing it to rivals, can benefit competition.
In July, an inquiry group from Britain's Competition and Markets Authority said Microsoft's licensing practices reduced competition for cloud services "by materially disadvantaging AWS and Google".
Microsoft said at the time that the group's report had ignored that "the cloud market has never been so dynamic and competitive".
($1 = 0.7473 pounds)
(Reporting by Sam Tobin; editing by Barbara Lewis)
Cloud computing is the delivery of computing services over the internet, allowing users to access and store data and applications on remote servers instead of local computers.
Competition law is a set of regulations that promote fair competition and prevent monopolistic practices in the marketplace, ensuring consumers have choices and fair prices.
Overcharging occurs when a seller charges a customer more than the agreed or fair price for goods or services, often leading to disputes and legal action.
Explore more articles in the Headlines category
