Thousands of UK businesses could receive compensation if a legal claim against tech giant Microsoft is successful. Expert Dr. Maria Luisa Stasi alleged that Microsoft overcharged the price of its Windows Server software, which is used for cloud computing.
Dr. The Stasi has demanded more than £1 billion in compensation for UK businesses. The claim is filed on an “opt- out” basis, meaning that all UK businesses are initially represented in the claim, unless they wish to opt out of the process on their own.
It is one of several class actions filed against major technology companies in the UK’s Competition Appeal Tribunal. Earlier, similar claims have been filed against Facebook, Google and mobile companies. These types of claims have only been in force in the UK since 2015, so it is difficult to say exactly how likely they are to succeed. However, results may take years.
An Investigation on the Cloud Computing Industry:-
The claim comes in the wake of an investigation launched by the UK’s Competition and Markets Authority (CMA) into the country’s cloud computing industry.
Cloud computing means storing data online, which is accessible anytime and anywhere. It is an important part of modern technology. This includes everything from storing data to streaming video and music.
Cloud computing has now become an integral part of business operations. For this, Microsoft’s Azure platform is often used or contracted with alternative service providers such as Google, Amazon. However, software licensing from Microsoft has been a major point of contention.
Google told the CMA in June that “Microsoft’s licensing practices drive up competitors’ costs and reduce their ability to meet consumer demand.” Microsoft, however, has denied the allegations, saying in a reply to the CMA’s inquiry in July that its license terms do not result in any “significant increase” in the costs of a rival in the cloud sector.
Big impact on small businesses:-
Legal action filed today claims that “several thousand” UK businesses have been affected. Small businesses are said to be particularly affected. In 2022, according to figures from the Office for National Statistics, there were more business closures than new ones.
Dr. “In short, Microsoft is forcing UK businesses that use cloud service providers such as Google, Amazon and Alibaba to pay more,” Stasi said.
“By doing this, Microsoft is forcing customers to use its cloud service Azure and restricting competition. The purpose of this lawsuit is to challenge this anti- competitive policy by Microsoft, reveal the extent to which UK businesses have been unfairly overpaid, and seek compensation for their losses.” This is it.”
Thousands of UK businesses are likely to receive compensation if the claim is successful. However, it is currently difficult to predict how long this process will take and what the final outcome will be.