Microsoft faces $2.8 billion UK lawsuit over Windows Server cloud pricing

Microsoft is facing a lawsuit in the UK Competition Appeals Tribunal alleging that the company charges higher wholesale prices for Windows Server to customers using Amazon AWS, Google Cloud, or Alibaba Cloud. The pricing disparity allegedly makes Microsoft's Azure cloud service cheaper than competitors. Competition lawyer Maria Luisa Stasi filed the case in late 2025, representing nearly 60,000 businesses that used Microsoft software on competing cloud services. Her team suggests the claim is worth about $2.8 billion. Microsoft argued that Stasi did not show a concrete method for computing alleged losses and asked that the case be dismissed. The London tribunal certified the case, and it is now proceeding to trial. Microsoft said it plans to appeal the decision and disputes the underlying allegations. The British Competition and Markets Authority found in mid-2025 that Microsoft's licensing practice is materially disadvantaging AWS and Google, and opened a separate investigation. Regulators in the U.S. and Europe are also examining Microsoft and other cloud computing firms. The Federal Trade Commission reportedly began scrutinizing claims late last year that the company imposed punitive licensing terms in its productivity suite that make it harder for customers to switch from Azure.