Microsoft was accused on Tuesday of unfairly overcharging customers of competing cloud companies in a lawsuit seeking damages over £1 billion ($1.27 billion).
The lawsuit claims that customers using Amazon Web Services, Google Cloud Platform, or Alibaba Cloud are forced to pay higher fees for licensing Microsoft’s cloud-based Windows Server software on these rivals’ infrastructure.
Microsoft offers lower prices to firms running Windows Server on Azure compared to competitors like AWS, Google Cloud, or Alibaba Cloud, according to CNBC.
The lawsuit argues that companies using the widely-adopted server software on alternative cloud platforms are effectively being overcharged.
The lawsuit further claims that Microsoft exploits its dominant position in cloud-based server operating systems to charge higher prices and pressure customers into migrating to Azure.
Maria Luisa Stasi, a competition lawyer representing the claimants, is seeking over £1 billion in compensation for the affected firms.
Microsoft is yet to respond for comment.
“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,” Stasi, who is head of law and policy for digital rights advocacy group Article19, said in a statement.
“By doing so, Microsoft is trying to force customers into using its cloud computing service Azure and restricting competition in the sector.”
The lawsuit “aims to challenge Microsoft’s anti-competitive behavior, push them to reveal exactly how much businesses in the UK have been illegally penalized, and return the money to organizations that have been unfairly overcharged,” she added.
The lawsuit covers thousands of British businesses and organizations in an “opt-out” collective action, meaning any potentially impacted company is automatically included and can receive compensation if Microsoft loses.
