Microsoft has been hit with a massive $1.25 billion antitrust lawsuit filed by the United Kingdom Competition Appeal Tribunal. The lawsuit, which is a class-action case, centers around allegations of unfair pricing practices related to Windows Server licensing for users of competing cloud computing services.
The lawsuit claims that customers using cloud platforms like Google Cloud Platform (GCP), Amazon Web Services (AWS), and Alibaba Cloud were charged higher fees to use Microsoft’s software compared to customers using Microsoft’s own Azure cloud services. This disparity in pricing has raised concerns about Microsoft’s competitive conduct within the cloud computing industry.
This legal action comes just days after the US Federal Trade Commission (FTC) launched its own sweeping antitrust investigation into Microsoft’s business practices. According to reports from the Financial Times, the FTC’s inquiry is examining a broad range of Microsoft services, including cloud computing, cybersecurity, and artificial intelligence. The investigation is focused on whether Microsoft’s bundling of its cloud services with office software and security tools violates antitrust laws by giving it an unfair edge over competitors.
The FTC’s investigation, which was detailed by Bloomberg and other media outlets, is reportedly looking into whether Microsoft’s product combinations and business strategies within its cloud, AI, and cybersecurity lines may have breached antitrust legislation. The New York Times has indicated that particular attention is being given to how Microsoft integrates its cloud offerings with its office productivity and security solutions.
As the company faces increasing legal scrutiny, Microsoft’s competitive practices in the global tech market continue to attract attention from regulators both in the UK and the United States.
