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Microsoft must face $2.8 billion UK lawsuit over cloud computing licences

The opt-out case could seek up to £2.1 billion in damages after judges said the claim has a reasonable prospect of success.

  • On Tuesday, the Competition Appeal Tribunal in London ruled Microsoft must face a class-action lawsuit alleging the company overcharged nearly 60,000 British businesses for Windows Server licenses on rival cloud platforms.
  • Competition lawyer Maria Luisa Stasi brought the claim, alleging Microsoft imposed higher wholesale fees for Windows Server when used outside its own Azure platform, effectively making Azure more attractive to customers.
  • Worth £2.1 billion, the case 'comfortably passes' the reasonable prospect of success threshold, the Tribunal said, while Microsoft disputes the allegations, maintaining the cloud market remains 'dynamic and competitive.'
  • Stasi described the ruling as 'an important moment for the thousands of organisations impacted by Microsoft's conduct,' though the company intends to appeal, arguing the decision failed to follow Supreme Court precedent.
  • Regulators in the United Kingdom, Europe, and the United States are examining Microsoft's licensing practices, with the Competition and Markets Authority relaunching an investigation last month into software services including Teams and Copilot.
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Microsoft being sued for £1.7 billion over ‘abusing position’ in cloud computing

Almost 60,000 UK businesses and organisations are collectively seeking compensation.

·London, United Kingdom
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PYMNTS.com broke the news on Tuesday, April 21, 2026.
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