Users from the UK have taken Microsoft to court, alleging that the company artificially inflated prices for its programs. If the court rules in favor of the plaintiffs, the tech giant could be required to compensate British clients with several billion pounds.
Microsoft is accused of leveraging its position in the market to restrict the sale of second-hand licenses for its products. This, according to the plaintiffs, led to a significant increase in prices for both new and used software licenses for products such as the Office package and the Windows operating system. All British individuals who purchased licenses since October 1st, 2015 are involved in the lawsuit.
“The corporation’s actions have had a significant and detrimental impact on millions of individuals, as well as state and commercial organizations that rely on this software for their daily operations,” explained Kate Pollock, the head of STEWARTS Law Firm. “In our view, Microsoft manipulated the market, introducing licensing rules that stifled competition and allowed them to overcharge customers.”
Alex Wolfson, representing the victims, highlighted the serious repercussions of Microsoft’s actions on British consumers, businesses, and government institutions. “We are seeking accountability from the company and fair compensation for all those affected. This lawsuit could result in damages amounting to billions of pounds, demonstrating that even the largest tech companies must adhere to fair practices in the digital market.”
This is not the first time Microsoft has faced legal challenges in the UK. In 2021, Valuelicensing, a software license reseller, sought £270 million from the tech giant, alleging that Microsoft pressured customers to switch to subscriptions and prohibited them from reselling already purchased licenses in exchange for discounts. This ongoing case has yet to be resolved.
In 2024, Microsoft encountered another lawsuit from customers totaling over a billion pounds (£1.32 billion). Windows Server users complained that the company imposed excessive fees on them for running programs on other cloud platforms, penalizing those who chose not to use Microsoft’s Azure cloud service. This legal battle is also ongoing.
The European cloud infrastructure suppliers’ organization (Cispe) has also raised concerns about Microsoft’s licensing practices. In 2022, competitors in the cloud technology sector lodged a complaint with the European Commission against the company, which was later withdrawn after Microsoft provided compensation. However, the dispute could reignite if Microsoft fails to demonstrate progress in developing a Hoster Product, essentially a localized version of Azure, as previously promised to settle the claims raised by the European Commission.