Microsoft To Face £1.7 Bln Mass Cloud Computing Lawsuit In UK

LONDON, April 22 (Bernama-PA Media/dpa) -- Microsoft will face a £1.7 billion (US$2.3 billion) collective action court case in the United Kingdom (UK) over “abusing its dominant position” in cloud computing, PA Media/dpa reported, citing a tribunal ruling.

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 judgement, 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 a 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 its Windows Server operating system and cloud computing services, particularly the platform Azure.

-- BERNAMA-PA MEDIA/dpa