Almost 60,000 UK businesses and organisations are collectively seeking compensation.
Microsoft will face a £1.7 billion collective action court case over “abusing its dominant position” in cloud computing, a tribunal has ruled.
More than 59,000 UK businesses and organisations are collectively seeking compensation from the global computing giant after being allegedly overcharged for using a Windows Server on rival cloud services.
On April 21, The Competition Appeal Tribunal ruled that the claim can proceed towards trial.
The tribunal also granted a Collective Proceedings Order (CPO) on an opt-out basis, which allows the businesses to sue collectively, rather than as individuals.
In their judgment, the tribunal chaired by Mr Justice Adam Johnson noted that “the claim comfortably crosses the hurdle of having a real prospect of success”.
Maria Luisa Stasi, a leading digital markets regulation expert and lawyer, is bringing the case on behalf of those businesses, who would then be able to claim compensation if they are successful.
She said: “Today’s ruling is an important moment for the thousands of organisations impacted by Microsoft’s conduct and in ensuring that a critical sector of the economy is innovative and open.
“For years, Microsoft’s practices have had real financial impact on both public and private organisations.
“I’m now looking forward to preparing for trial and getting their money back on their behalf.”
The claim accuses Microsoft of abusing its position in its licensing practices in respect of both their operating system, Windows Server and its cloud computing services, particularly the platform Azure.
A Microsoft spokesperson said: “We plan to pursue an appeal of the tribunal’s decision because it failed to follow recent precedent from the Supreme Court on class action certifications.
“We also dispute the underlying allegations by the class representative and today’s decision makes no final determination on those claims.”
UK businesses that may have used the Windows server on rival cloud services can find out about compensation at https://ukcloudclaim.com/register/.
