Microsoft Hit with £2 Billion Lawsuit in the UK for Alleged Cloud Price Gouging

Countless UK enterprises are being encouraged to step forward following a £2 billion group legal action initiated against Microsoft, claiming that the technology behemoth overcharged customers utilizing its Windows Server software on competing cloud platforms such as Amazon Web Services (AWS), Google Cloud, and Alibaba Cloud.

The lawsuit, lodged in the UK’s Competition Appeal Tribunal (CAT), has been introduced by Dr Maria Luisa Stasi, a prominent expert in digital market regulation. It aims to seek compensation for companies that, according to her, have had to pay exorbitant prices due to Microsoft’s restrictive licensing policies.

“If your entity has employed Windows Server on Google, Amazon or Alibaba’s cloud services at any time since December 2018, you have very likely overspent,” Dr Stasi stated. “This legal initiative aims to put an end to that.”

“Individuals in charge of IT or cloud contracts should reach out. Billions have been siphoned from company budgets because of Microsoft’s licensing methodologies.”

Dr Stasi’s lawsuit could evolve into one of the largest antitrust actions ever pursued in the UK technology industry, potentially encompassing tens of thousands of entities, from startups to multinational corporations.

The litigation closely follows the Competition and Markets Authority’s (CMA) conclusive report on the UK’s cloud computing market, which found that Microsoft’s software licensing strategies “negatively affect competition.”

The CMA discovered that Microsoft’s pricing strategy makes it pricier for clients to operate its software on competing clouds than on its own Azure platform, essentially punishing companies for utilizing rivals’ infrastructure.

These findings align closely with Dr Stasi’s argument, which will return to court on 11 December 2025 for a session to determine if it can advance to a full trial.

Legal analysts suggest that this case could establish a precedent for collective actions against dominant tech companies accused of exploiting market power in software and cloud services.

Cloud expenses escalate for UK enterprises

The legal initiative arises amid increasing pressure on businesses grappling with rising cloud expenditures.

Recent studies indicate that 67% of UK IT leaders anticipate further increases in their cloud costs over the coming year, with 68% of firms already scaling back in other IT sectors to make up for it.

Smaller entities have been impacted especially hard. Many do not possess the means to navigate complicated licensing frameworks or negotiate tailored cloud contracts, leaving them susceptible to unseen cost discrepancies.

“Cloud expenses are skyrocketing for UK businesses,” Dr Stasi remarked. “Reaching out does not bind you to anything but may enable your business to reclaim a significant portion of its IT budget.”

The lawsuit against Microsoft is part of a broader examination of Big Tech’s dominance over the global cloud landscape.

Regulators throughout Europe, the US, and Asia have intensified their inquiries into whether large technology firms are leveraging software dominance to bolster authority over infrastructure markets.

In May 2025, the European Commission also expressed concern over “loyalty-inducing pricing” in cloud software licensing, mirroring the CMA’s conclusions.

Microsoft has consistently defended its methodologies, asserting that its licensing models are “pro-competitive” and designed to “provide customers with choice and flexibility.”

If the CAT validates Dr Stasi’s case as a collective proceeding, impacted entities could automatically be included unless they choose to opt out.

What to expect moving forward

A procedural hearing is slated for December 2025, after which the Tribunal will determine if the case proceeds to trial. If victorious, compensation could be dispensed among all eligible UK entities that used Windows Server on competing clouds after December 2018.

Legal experts indicate that the potential £2 billion claim highlights the increasing adoption of class-action-style competition litigation in the UK following Brexit, enabling domestic courts to handle global technology disputes that were previously managed in Brussels.

For now, businesses are encouraged to register interest or submit usage information — a process that carries no commitment to join the claim but could affect eligibility for future compensation.