Microsoft forces customers to pay higher licensing fees for using Windows Server on Amazon Web Services (AWS), Google Cloud Platform (GCP), and Alibaba Cloud than it charges for the same type of licence running on its own Microsoft Azure cloud. By doing so, Microsoft makes it cheaper for users of Microsoft products to operate that software on Microsoft Azure rather than on rival cloud platforms. We believe that Microsoft’s licensing practices are purposely designed for – and ultimately lead to – disincentivising customers from using competing cloud providers’ services.
Dr Maria Luisa Stasi in this claim contends that Microsoft’s licensing practices form part of a coherent strategy to leverage the technology giant’s dominant market position in server operating systems to restrict the use of its rivals’ cloud computing services.
Any UK business or organisation that uses Windows Server on AWS, GCP or Alibaba Cloud is eligible for this claim, and may well have been overcharged by Microsoft for its Windows licences.
Background – the Relevant Products
Organisations that license products from Microsoft for use on cloud computing services run by Microsoft’s competitors may have suffered financial loss by being overcharged for their licences and may be eligible to claim compensation. Specifically, if your organisation uses the following products, you may be able to join the proposed class:
Windows Server: Microsoft offers its customers a range of operating systems, including Windows 11. The most widely used operating systems run on servers (as opposed to local desktops) which this claim focuses on.
Cloud computing: In addition to operating systems, Microsoft also provides cloud computing services to customers. Cloud computing allows users to access computing services through the Internet, i.e. an organisation’s data storage, servers, or other on-demand computing resources and applications. Microsoft’s cloud service is called Microsoft Azure. In the UK, among the most commonly used cloud computing solutions provided by Microsoft’s competitors are AWS, GCP and Alibaba Cloud.
A business or organisation can choose their Windows Server to run on Microsoft Azure, or on a rival cloud computing service, including the ones listed above.
Microsoft licensing: Businesses and organisations that use Windows Server need to obtain a licence from Microsoft. There are various ways one can obtain a Microsoft licence. Customers obtaining licences for Windows Server via AWS, GCP or Alibaba do so pursuant to the Services Provider License Agreement or “SPLA” programme. The differences in price and quality between licensing Windows Server via the SPLA programme for use on AWS, GCP or Alibaba Cloud platform, and doing so to use on Microsoft Azure, is central to this claim.