Microsoft Corp (NASDAQ:MSFT) might be forced to compensate thousands of UK businesses if a class-action lawsuit instigated against the software giant is successful
Plaintiff Maria Luisa Stasi alleges the company overcharged firms for its Windows Server software and is seeking more than £1 billion in damages.
Stasi claims Microsoft penalised companies using rival cloud providers like Google and Amazon, pushing them toward its own subsidiary Azure. accusing the company of stifling competition in the sector.
The case coincides with a Competition and Markets Authority (CMA) investigation into the UK cloud computing market
Cloud services, such as Microsoft's Azure, Amazon, and Google, often rely on software licensing agreements, which have sparked controversy.
Google previously accused Microsoft of inflating competitors' costs through licensing practices, a claim Microsoft denies.
The lawsuit highlights the impact on small businesses, citing Office for National Statistics data showing more closures than startups in 2022.
Microsoft has yet to comment on the legal action.