Microsoft Faces £1bn Lawsuit For Cloud Licencing Damages

Uploaded on 2024-12-06 in NEWS-Cybersecurity News, FREE TO VIEW, BUSINESS-Services-IT & Telecoms

A major legal case has been launched against Microsoft in the UK, with claims that the technology giant overcharged thousands of businesses and organisations using rival cloud computing platforms. Many businesses could receive substantial compensation the claim filed against Microsoft is successful. 

The claim is led by competition lawyer Dr Maria Luisa Stasi, a regulation expert at Tilburg University and presently Head of Law and Policy for digital markets at human rights organisation ARTICLE 19. She claims that Microsfost has overcharged companies for its Window Server software, used in cloud computing.

The lawsuit, filed with the UK Competition Appeal Tribunal, accuses Microsoft for imposed higher licencing costs on companies using competing cloud services such as Amazon Web Services (AWS), Google Cloud Platform, and Alibaba Cloud. Dr Stasi said: “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...

“By doing so, Microsoft is trying to force customers into using its cloud computing service Azure and restricting competition in the sector...

“This lawsuit aims to challenge Microsoft’s anti-competitive behaviour, push them to reveal exactly how much businesses in the UK have been illegally penalised, and return the money to organisations that have been unfairly overcharged.” Stasi concludes

This action has been brought on an "opt-out" basis, meaning UK organisations are all being represented to begin with, unless they wish not to be.

The claim is the latest class action lawsuit to be filed at the UK's Competition Appeal Tribunal against big technology firms, including Google  and Facebook. These types of claims were first introduced in the UK less than 10 years ago and   there is very little case-law to indicate how likely it is to be successful -  it may take years for an outcome. 

Cloud computing is also now a critical part of how many businesses operate and typically, this means either using Microsoft's Azure platform or entering into agreements with alternative providers like Amazon and Google, who then may licence software from Microsoft.

This isn’t the first time that Microsoft has been criticised over its software pricing strategy, the company has also been criticised for imposing technical limitations designed to make it costly to switch providers. 

Techradar   |   Verdict   |    BBC   |   Yahoo   |   TechMonitor  |   BusinessCloud

Image: Salvatore De Lellis

You Might Also Read: 

AWS & Google Agree To Drop Cloud Service Exit Fees:

If you like this website and use the comprehensive 7,000-plus service supplier Directory, you can get unrestricted access, including the exclusive in-depth Directors Report series, by signing up for a Premium Subscription.

  • Individual £5 per month or £50 per year. Sign Up
  • Multi-User, Corporate & Library Accounts Available on Request

Cyber Security Intelligence: Captured Organised & Accessible

 

« Are Your Deduplication Capabilities Good Enough?
US Telecoms Customer Data Stolen By Chinese Hackers  »

CyberSecurity Jobsite
Check Point
Cyrin

Real Attacks. Real Tools. Real Scenarios.
Schedule a demo

Sign Up: Cyber Security Intelligence Newsletter

Directory of Suppliers

CYRIN

CYRIN

CYRIN® Cyber Range. Real Tools, Real Attacks, Real Scenarios. See why leading educational institutions and companies in the U.S. have begun to adopt the CYRIN® system.

North Infosec Testing (North IT)

North Infosec Testing (North IT)

North IT (North Infosec Testing) are an award-winning provider of web, software, and application penetration testing.

NordLayer

NordLayer

NordLayer is an adaptive network access security solution for modern businesses — from the world’s most trusted cybersecurity brand, Nord Security. 

Syxsense

Syxsense

Syxsense brings together endpoint management and security for greater efficiency and collaboration between IT management and security teams.

Clayden Law

Clayden Law

Clayden Law advise global businesses that buy and sell technology products and services. We are experts in information technology, data privacy and cybersecurity law.

Open Networking Foundation (ONF)

Open Networking Foundation (ONF)

The Open Networking Foundation (ONF) is a non-profit operator led consortium driving transformation of network infrastructure and carrier business models.

Guardtime

Guardtime

Guardtime's Black Lantern platform provides real-time cybersecurity and data-centric asset protection.

OPSWAT

OPSWAT

OPSWAT is a software company that provides solutions to secure and manage IT infrastructure.

LEXFO

LEXFO

LEXFO specializes in the security of information systems, assisting clients in protecting information assets using an offensive and innovative approach.

Cyber Security Capital (CS^)

Cyber Security Capital (CS^)

Cyber Security Capital is a consultancy helping to mobilise and empower individuals, corporate leaders and entrepreneurs in cyber security.

DNV

DNV

DNV are the independent expert in assurance and risk management. We deliver world-renowned testing, certification and technical advisory services.

Celerium

Celerium

Celerium transforms cyber defense for both companies and industry sectors by leveraging cyber threat intelligence to defend against cyber threats and attacks.

ValidSoft

ValidSoft

ValidSoft is a security software company, providing telecommunications-based multi-factor authentication, identity and transaction verification technology.

drie

drie

drie is an end-to-end cloud services company based in Bahrain, Dubai and London. We enable businesses to adopt, scale on and build for cloud.

Opora

Opora

Opora is the leading cybersecurity provider of adversary behavior analytics “ABA” and preemptive security solutions.

Kingston Technology

Kingston Technology

Kingston is a leading global manufacturer of memory and storage solutions including encrypted storage solutions to protect data inside and outside the firewall.

Techmentum

Techmentum

At Techmentum, our mission is to utilize technology to help companies succeed. Our expertise includes fully managed IT services, cybersecurity, cloud, and custom technology solutions.

Verinext

Verinext

Verinext delivers transformative business technology, from intelligently automating time-consuming tasks and protecting data assets to securing infrastructure and improving customer experiences.

Afripol

Afripol

AFRIPOL was set up to strengthen cooperation between the police agencies of AU member states in the prevention and fight against organized transnational crime, terrorism, and cybercrime.

Cybermindz

Cybermindz

Many cyber security professionals are under sustained and increasing stress. We set about providing direct support to restore and rebuild emotional and cognitive health.

Atlantica Digital

Atlantica Digital

Atlantica design and create highly innovative software solutions and solid, scalable and secure IT infrastructures for a constantly evolving market.