Microsoft Charged £1 Billion Lawsuit in UK
Microsoft was charged on Tuesday with unjustly overcharging rival cloud service providers’ clients, with a lawsuit seeking damages exceeding £1 billion
Customers who use Amazon Web Services (AWS), Google Cloud Platform, or Alibaba Cloud—all major rivals to Microsoft’s Azure cloud—are allegedly required to pay more to license the tech giant’s cloud-based Windows Server software on competitors’ infrastructure, according to the lawsuit.
Microsoft provides Windows Server on Azure at a lower cost than direct competitors like AWS, Google Cloud, or Alibaba Cloud. Businesses using the popular server software are allegedly being overcharged while using other cloud computing options, according to the lawsuit.
Additionally, Microsoft uses its market dominance in cloud-based server operating systems to influence customers to switch to Azure by raising prices. Maria Luisa Stasi a competition lawyer is suing for over £1 billion in damages for the impacted companies.
The lawsuit stated that Microsoft hoped to stifle competition in the market and compel users to use its cloud computing service Azure. In addition, she disclosed 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.”. It is an “opt-out” collective action, thousands of British companies and organizations are represented in it.
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