UK court allows 60,000 businesses to sue Microsoft for allegedly overcharging Windows Server licenses on rival cloud platforms, seeking up to £2.1 billion in damages

On April 21, 2026, the UK Competition Appeal Tribunal permitted a mass lawsuit against Microsoft to proceed. Competition lawyer Maria Luisa Stasi filed the case on behalf of approximately 60,000 businesses, claiming potential damages of up to £2.1 billion ($2.8 billion). The lawsuit alleges Microsoft raised wholesale prices for Windows Server licenses on Amazon, Google, and Alibaba's cloud platforms while offering cheaper pricing on its own Azure service.

According to the lawsuit, Microsoft's pricing strategy made Azure significantly more affordable than competitors, effectively pushing customers toward Microsoft's own cloud service. This pricing difference is claimed to have distorted competition and inflated costs for businesses using alternative cloud providers.

If the lawsuit succeeds, businesses that paid inflated licensing fees on non-Microsoft cloud platforms could recover damages—lowering their cloud computing costs retroactively. The case also triggers ongoing investigations by regulators in the UK, Europe, and the US, including a recently launched UK Competition and Markets Authority (CMA) probe into Microsoft's cloud licensing practices, creating potential for broader regulatory action or forced pricing changes.