Microsoft faces £1bn class action case in UK over software prices

The case has been brought on an “opt-out” basis – meaning UK organisations are all being represented to begin with unless they wish not to be.

And it is the latest class action lawsuit to be filed at the UK’s Competition Appeal Tribunal against big tech firms, with Facebook, Google, and mobile phone firms amongst those facing action in other claims.

These types of claims are relatively new still, having been introduced in the UK in 2015, so there is little precedence to indicate how likely it is to be successful – but it will probably be years from now before there is an outcome.

It comes as the UK’s Competition and Markets Authority investigates the cloud computing industry in the UK.

Broadly, cloud computing refers to data stored online, which can be accessed anywhere at any time.

It is a key part of how the modern world works, with cloud uses varying from storing vast amounts of data to streaming videos and music.

Cloud computing is also now a critical part of how many businesses operate.

Typically, this means either using Microsoft’s Azure platform or entering into agreements with alternative providers like Amazon and Google – who then may licence software from Microsoft.

This licensing element is what has caused controversy, with Google telling the CMA in June: “We believe Microsoft’s licensing practices both raise rivals’ costs and weaken rivals’ ability to compete for a significant proportion of customer demand.”

Microsoft has strongly denied this, opening its response to the investigation in July by stating that its licensing terms “do not meaningfully raise cloud rivals’ costs”.