Microsoft is facing a £1.7 billion class action lawsuit in the United Kingdom over claims that it exploited its dominant market position to overcharge businesses.
The case was filed by Maria Luisa Stasi on behalf of roughly 59,000 UK businesses and organisations. At the heart of the lawsuit are allegations that Microsoft imposed higher fees on customers running its Windows Server software on competing cloud platforms.
Stasi argued that the company’s practices have had a significant financial impact on both public and private sector organisations over several years. The Competition Appeal Tribunal has allowed the case to move forward, stating that it has a “reasonable prospect of success.”
In its ruling, the tribunal noted that Microsoft is accused of abusing its dominance in the paid server operating system market to restrict competition in cloud computing services. If the claim succeeds, total compensation could range between £1.7 billion and £2.1 billion.
Microsoft has said it plans to challenge the decision. A company spokesperson maintained that it disputes the allegations and emphasized that the ruling does not amount to a final judgment on the claims.
The lawsuit comes as Microsoft faces increasing regulatory scrutiny over its cloud business practices in both the UK and the European Union. British authorities are also reviewing the company’s software licensing model to determine whether it should be designated as having “strategic market status,” which would subject it to tighter competition rules.
