A major legal battle is heating up in the UK as thousands of businesses accuse Microsoft of unfair cloud licensing practices. The £2 billion class action claim says the company overcharges for running Windows Server on rival platforms like Amazon Web Services, Google Cloud, and Alibaba, with a key hearing set for December 2025.
Background of the Dispute
The case stems from long-standing complaints about Microsoft’s cloud policies. It started with a filing in December 2024 at the UK’s Competition Appeal Tribunal. Digital markets expert Dr. Maria Luisa Stasi leads the effort, pointing to higher costs for users outside Microsoft’s Azure platform.
Regulators have weighed in too. The UK’s Competition and Markets Authority released a detailed report in July 2025. That document highlighted how Microsoft’s rules make it pricier and harder for customers to use competitors’ clouds.
Businesses report paying up to four times more for Windows Server licenses on non-Azure setups. This affects organizations that rely on flexible cloud options for their operations.
Details of the Alleged Overcharging
The claim focuses on Windows Server software. Users on AWS, Google, or Alibaba often face steep fees compared to Azure. For example, certain licenses cannot transfer easily to rivals, forcing extra payments.
Stasi urges affected groups to join. She notes that any UK organization using these platforms since December 2018 might qualify. The action seeks refunds and changes to stop future overcharges.
Here are key elements of the licensing issues raised:
- Price gaps: Up to 400% higher costs on rival clouds.
- Product limits: Some Microsoft tools unavailable outside Azure.
- Transfer barriers: Existing licenses hard to move to competitors.
The lawsuit could set a precedent for fair competition in cloud services.
Experts say this ties into broader antitrust concerns. Google and Amazon have voiced similar gripes in recent years.
Impact on UK Businesses
Many companies feel the pinch from these practices. Cloud costs have soared, draining IT budgets across sectors like finance and retail.
One estimate suggests billions lost due to inflated fees. Small and medium enterprises suffer most, as they lack bargaining power with big tech firms.
A table below outlines reported cost differences for Windows Server licensing:
| Platform | Average License Cost (per instance) | Compared to Azure |
|---|---|---|
| Azure | £100 | Baseline |
| AWS | £400 | 4x higher |
| Google Cloud | £350 | 3.5x higher |
| Alibaba | £300 | 3x higher |
This data shows why businesses seek relief. Joining the claim offers a chance to recover funds without upfront costs.
The push for more backers comes as cloud adoption grows in the UK. Firms want affordable options to innovate and compete.
Microsoft’s Response and Challenges
Microsoft has until late 2025 to defend its position fully. So far, the company denies wrongdoing and plans to fight the case.
In past statements, officials argue their licensing supports innovation and security. Yet, critics like Google claim things are getting worse, not better.
The firm faces multiple fronts. Recent rulings in Austria flagged data privacy issues with Microsoft 365 in schools. Plus, ongoing debates over Windows 10 support add pressure.
October 2025 brought licensing tweaks for Remote Desktop Services. These aim to address some complaints but fall short for many.
Broader Industry Context
This UK case mirrors global tensions in cloud computing. The European Union probes similar issues, with Google filing complaints in 2024.
Amazon has echoed calls for change, saying fair rules could shift half of Azure workloads to other providers.
Antitrust actions against tech giants are rising. Microsoft’s Activision deal faced scrutiny in 2023, leading to concessions.
As cloud markets evolve, fair licensing becomes key. Regulators push for open competition to benefit users.
What Happens Next
The December hearing will decide if the case proceeds to trial. If approved, it could lead to major payouts and policy shifts.
Businesses have time to sign up. Experts predict more participants as awareness spreads.
This fight highlights the need for transparent tech practices. It could reshape how companies choose cloud providers.
Share your thoughts on this lawsuit in the comments below. Have you faced higher cloud costs with Microsoft? Spread the word to help others stay informed.
