Microsoft Faces UK Court Over Alleged Unfair Cloud Licensing Practices

Microsoft is back in court in the United Kingdom amid allegations of unfair cloud licensing practices. Dr. Maria Luisa Stasi has filed a class action accusing the tech giant of overcharging UK organizations for running Windows Server on competing cloud platforms such as AWS and Google Cloud.

Microsoft Faces UK Court Over Alleged Unfair Cloud Licensing Practices

Allegations of Anti-Competitive Practices

The lawsuit claims Microsoft leveraged its dominance in server software to push customers toward its Azure cloud platform, restricting flexibility and creating financial burdens for organizations using rival services.

• Approximately 59,000 UK organizations are included in the proposed class.

• Estimated losses per organization could run into tens of thousands of pounds, potentially exposing Microsoft to over £2 billion in damages.

• Estimated trial costs are around £18.4 million, but Dr. Stasi emphasizes that the benefits of continuing the proceedings outweigh the costs.

  
  

Previous Responses and Ongoing Investigations

Microsoft has dismissed the case as an "opportunistic attempt by a law firm and its private funders" and argued that the claims mirror complaints previously raised by Google, which Microsoft says have already been addressed.

In September 2025, Google lodged a formal complaint with the European Commission against Microsoft, criticizing the company for creating pricing barriers and interoperability restrictions, including limits on security updates for customers using rival cloud providers.

Implications for Microsoft and the Cloud Market

This case highlights growing scrutiny over cloud licensing practices and the competitive pressures faced by major cloud providers. Should the court rule against Microsoft, it could face significant financial and reputational repercussions, while also setting a precedent for fairer licensing practices in the UK and Europe.