A lawsuit against computer giant Microsoft might result in compensation for thousands of UK firms.
Dr. Maria Luisa Stasi, a regulatory specialist, claims the tech giant overcharged businesses for its cloud computing program, Window Server.
On behalf of UK companies, she is requesting more than £1 billion in compensation.
Microsoft has been contacted by the BBC for comment.
Since the case was filed on a “opt-out” basis, all UK organizations are initially represented unless they specifically request not to be.
Additionally, Facebook, Google, and mobile phone companies are among the companies facing action in additional claims in this most recent class action case against large digital companies to be filed before the UK’s Competition Appeal Tribunal.
Since they were just introduced in the UK in 2015, these claims are still relatively new, so there isn’t much precedent to suggest their likelihood of success. However, it will likely take years before anything comes of them.
It coincides with an investigation of the UK’s cloud computing market by the Competition and Markets Authority.
In general, material stored online that is accessible from any location at any time is referred to as cloud computing.
With applications ranging from streaming music and films to storing enormous volumes of data, the cloud is an essential component of how the modern world functions.
These days, cloud computing is also essential to the operations of many companies.
This usually entails utilizing Microsoft’s Azure platform or signing contracts with other suppliers, such as Amazon and Google, who may then license Microsoft products.
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In June, Google told the CMA, “We believe Microsoft’s licensing practices both raise rivals’ costs and weaken rivals’ ability to compete for a significant proportion of customer demand.” This is the licensing issue that has generated controversy.
The claim that Microsoft’s licensing terms “do not meaningfully raise cloud rivals’ costs” was made in July as part of the company’s initial response to the inquiry.
Small businesses
According to the lawsuit filed today, “many thousands” of firms in the UK would have been impacted.
Based on data from the Office for National Statistics, it claims that small enterprises “are hit particularly hard” and that in 2022, more businesses closed than opened.
Ms. Stasi stated, “Microsoft is penalizing UK companies and organizations for using Google, Amazon, and Alibaba for cloud computing by making them pay more for Windows Server.”
“By doing this, Microsoft is attempting to compel users to use Azure, its cloud computing service, and limiting industry competition.
“The purpose of this lawsuit is to dispute Microsoft’s anti-competitive actions, force them to disclose the precise amount of money that UK businesses have been unlawfully penalized, and reimburse the funds to organizations that have been unjustly overcharged.”
SOURCE: BBC
