Microsoft Faces Legal Action in UK Over Cloud Service Fees

Dec 03, 2024

Microsoft (MSFT, Financial) is facing a legal challenge in the UK, with claims that businesses using cloud services from Amazon, Google, and Alibaba may incur higher fees for using Windows Server software. Competition lawyer Maria Luisa Stasi filed the lawsuit, alleging that UK companies might be owed over £1 billion ($1.27 billion) in compensation.

Stasi argues that Microsoft is penalizing UK enterprises that opt for cloud services other than its own Azure, compelling them to pay more for Windows Server. This practice, she claims, aims to push customers towards Azure, thus limiting competition in the cloud market. The UK's Competition and Markets Authority is investigating the cloud computing sector, dominated by Amazon AWS, Microsoft Azure, and Google Cloud.

This investigation includes Microsoft’s licensing strategies for its Windows Server and Microsoft 365 products. The authority is expected to release updates on the inquiry soon.

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I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

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