Microsoft is back in court in the UK over unfair cloud licensing claims

• Microsoft accused of imposing barriers to discourage customers from running Windows Server on rival clouds
• UK businesses could have lost tens of thousands of pounds due to unfair licensing
• The trial, set to cost an estimated £18.4 million, could see Microsoft having to pay £2 billion in compensation if found guilty

Microsoft has once again found itself in trouble in the UK over unfair cloud licensing practices, with Dr Maria Luisa Stasi accusing the company of overcharging UK organizations to run Windows Server on rival clouds (such as AWS and Google Cloud).

Dr Stasi alleges Microsoft has used its dominance in server software to force customers towards its Azure cloud platform.

The case is being heard by the Competition Appeal Tribunal (CAT), with around 59,000 British organizations included in the proposed class.

Microsoft facing legal battle in UK over cloud licensing

According to the proposed class action lawsuit, the average losses per organization could be measured in the tens of thousands of pounds, leaving the company potentially facing a compensation hit of more than £2 billion if found guilty.

Stasi said, "the benefits of continuing the collective proceedings strongly outweigh the costs" (per The Register) – as the estimated trial costs are £18.4 million.

Microsoft previously dismissed the case as "an opportunistic attempt by a law firm and its private funders to piggy-back on baseless complaints Google has made and which we've all addressed or rebutted."

In September 2025, Google announced it had filed a complaint with the European Commission over Microsoft's cloud licensing practices. Google criticized Redmond for implementing pricing obstructions and interoperability barriers, like limits on security patches for customers using rival clouds.

Later on in November, Google withdrew its complain on the basis that the European Commission would assess cloud sector practices via a separate process. "We stand behind the arguments... and we continue to work with policymakers, customers, and regulators across the EU, the UK, and elsewhere to advocate for choice and openness in the cloud market," Google Cloud Europe Head of Government Affairs and Public Policy Giorgia Abeltino wrote.

TechRadar Pro asked Microsoft for an updated comment with regards to this UK development. We did not receive an immediate response.

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