Microsoft faces £1bn UK authorized motion over cloud practices

Editorial Team
3 Min Read


Microsoft is going through a £1bn authorized motion within the UK over allegations it has been unfairly up-charging prospects who use rival cloud suppliers. 

A declare has been filed to the Competitors Attraction Tribunal accusing Microsoft of charging larger licensing charges for Home windows Server to customers of rival cloud computing suppliers. 

The declare alleges that British companies utilizing suppliers corresponding to Amazon Internet Providers and Google Cloud over Azure have been charged extra for utilizing its software program. 

The go well with was filed by Dr Maria Luisa Stasi and regulation agency Scott+Scott on behalf of 1000’s of companies. 

“Put merely, Microsoft is punishing UK companies and organisations for utilizing Google, Amazon and Alibaba for cloud computing by forcing them to pay extra money for Home windows Server. By doing so, Microsoft is attempting to drive prospects into utilizing its cloud computing service Azure and proscribing competitors within the sector,” Stasi stated. 

“This lawsuit goals to problem Microsoft’s anti-competitive behaviour, push them to disclose precisely how a lot companies within the UK have been illegally penalised, and return the cash to organisations which have been unfairly overcharged.” 

The authorized motion comes amid quite a few accusations of anti-competitiveness in opposition to Microsoft within the cloud market. 

In September, a probe from the Competitors and Markets Authority (CMA) prompted Google to accuse Microsoft of “considerably impeding buyer selection” within the UK cloud market with its software program licensing practices.  

This declare was supported by Amazon, which stated there’s “a historical past of cloud suppliers and prospects being sad with Microsoft’s conduct,” and that Microsoft’s “conduct is artificially imposed and might be simply mounted”. 

UKTN has contacted Microsoft for remark. 

Nicky Stewart, senior advisor to the Open Cloud Coalition, commented: “Unfair software program licensing practices, like these highlighted on this case, are a big problem for cloud suppliers, disproportionately harming competitors and innovation throughout the cloud ecosystem. These practices create limitations, significantly for smaller, extra progressive corporations by imposing larger prices on companies that select various cloud companies.

“A aggressive cloud market is important to fostering innovation, empowering client selection, and making certain the resilience of the digital economic system. Decisive motion is required to deal with these licensing practices and promote honest competitors for the advantage of companies and shoppers alike.”

Learn extra: The UK cloud market doesn’t must be this fashion 

 


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