For the quickest way to join, simply enter your email below and get access. We will send a confirmation and sign you up to our newsletter to keep you updated on all your gaming news.
"The cloud market has never been so dynamic and competitive": Microsoft faces a $2.8 billion UK lawsuit over Azure cloud licensing affecting 60,000 businesses
The Redmond giant argues that using Windows Server as an input for Azure while simultaneously licensing it to rivals could be good for healthy competition.
All the latest news, reviews, and guides for Windows and Xbox diehards.
You are now subscribed
Your newsletter sign-up was successful
Join the club
Get full access to premium articles, exclusive features and a growing list of member rewards.
An account already exists for this email address, please log in.
Subscribe to our newsletter
A London-based tribunal recently ruled that Microsoft must face a class-action lawsuit alleging the tech giant has set the wholesale pricing for its Windows Server software on competing cloud platforms at higher rates than on its own Azure service.
Competition lawyer Maria Luisa Stasi initiated the lawsuit on behalf of approximately 60,000 UK businesses, seeking damages of roughly $2.8 billion. Microsoft's apparent setting of higher wholesale prices for Windows Server is an anti-competitive business practice. What's more, the extra cost is passed on to the customers who choose to access the product from rival cloud platforms.
Ultimately, this decidedly makes Azure more appealing to customers. The software giant indicated that the lawsuit doesn't provide a workable method for calculating the indicated damages, prompting it to ask the court to have the case thrown out. However, London's Competition Appeal Tribunal dismissed Microsoft's plea and indicated that the case is proceeding to trial (via Reuters).
Article continues below
Speaking to Reuters, a Microsoft spokesperson indicated that: "We also dispute the underlying allegations by the class representative (Stasi), and today's decision makes no final determination on those claims."
They continued, "The cloud market has never been so dynamic and competitive".
That said, Stasi argues that the tribunal's ruling to allow the lawsuit to proceed to trial was "an important moment for the thousands of organisations impacted by Microsoft's conduct".
Interestingly, Microsoft has previously argued that using Windows Server as an input for Azure while simultaneously licensing it to rivals could be beneficial for competition in the grand scheme of things. Last month, the United Kingdom's Competition and Markets Authority (CMA) indicated that it was relaunching its investigation into Microsoft's corporate software services, including Windows, Word, Excel, Teams, and Copilot.
The CMA hopes to address any concerns around Microsoft’s licensing practices in cloud and facilitate a level playing field for AI, as the technology gains broad adoption across organizations.
Join us on Reddit at r/WindowsCentral to share your insights and discuss our latest news, reviews, and more.
Kevin Okemwa is a seasoned tech journalist based in Nairobi, Kenya with lots of experience covering the latest trends and developments in the industry at Windows Central. With a passion for innovation and a keen eye for detail, he has written for leading publications such as OnMSFT, MakeUseOf, and Windows Report, providing insightful analysis and breaking news on everything revolving around the Microsoft ecosystem. While AFK and not busy following the ever-emerging trends in tech, you can find him exploring the world or listening to music.
You must confirm your public display name before commenting
Please logout and then login again, you will then be prompted to enter your display name.
Windows Central Insider
