$2.8 Billion Lawsuit Against Microsoft Over Windows Server Pricing Moves to Trial in the UK

Microsoft has found itself in hot water once again in the UK. This time, it is facing a major legal challenge in the region for overcharging businesses using Windows Server on rival cloud platforms. For those unaware, the case has been brought by competition lawyer Maria Luisa Stasi on behalf of nearly 60,000 businesses who used Windows Server on platforms like Amazon AWS, Google Cloud, and Alibaba Cloud.

Microsoft faces lawsuit over cloud pricing

The lawsuit argues that Microsoft charged higher wholesale prices for Windows Server when used outside its own Azure platform. Those added costs were then passed on to customers, making Azure a cheaper option compared to its competitors.

According to earlier filings, the total claim could reach up to £2.1 billion (approx. $2.8 billion), which puts serious financial weight behind the case. To catch you up, Microsoft had pushed back against the lawsuit late last year, arguing that the case does not clearly define how losses should be calculated. The company also said the claim should be dismissed.

Now, Reuters reports that the UK’s Competition Appeal Tribunal has now allowed the case to proceed toward trial. This does not mean a final ruling yet, but it is a key step that keeps the lawsuit alive. Stasi, in a statement to Reuters, said it is “an important moment for the thousands of organizations impacted by Microsoft’s conduct.”

Licensing practices under wider scrutiny

The aforementioned is not the only case. Regulators in the UK, Europe, and the US are already looking into Microsoft’s cloud practices. For those unaware, the UK’s Competition and Markets Authority (CMA) will officially launch an investigation into Microsoft’s business software ecosystem and its influence across cloud and AI-powered tools. That probe is set to begin sometime in the next month.