Microsoft was accused on Tuesday of unfairly overcharging customers of rival cloud companies in a more than $1 billion lawsuit. pounds
OR Microsoft was accused Tuesday of unfairly overcharging customers of rival cloud companies in a more than $1 billion lawsuit. pounds ($1.27 billion).
According to the lawsuit, Microsoft is accused of forcing customers using Amazon Web Services (AWS), Google Cloud Platform or Alibaba Cloud — all major competitors of Microsoft’s Azure cloud — to pay more to license Windows software. Server, based on the technology giant’s cloud, on the infrastructure of rivals.
According to a report by CNBC, Microsoft offers a cheaper price to businesses that use Windows Server on Azure than on direct competitors such as AWS, Google Cloud or Alibaba Cloud. The lawsuit claims that the companies that run the particular server software are overcharged for using cloud alternatives.
The lawsuit also adds that Microsoft is taking advantage of its dominant position in the market for cloud-based server operating systems by extracting higher prices and inducing customers to move to Azure. Plaintiff Maria Luisa Stasi, a competition lawyer, is seeking more than 1 billion in damages. pounds for the businesses affected.
“Simply put, Microsoft is punishing UK businesses and organizations for using Google, Amazon and Alibaba for cloud by forcing them to pay more for Windows Server”Stasi, who heads the legal and policy division of digital rights advocacy group Article19, said in a statement shared with CNBC.
“In this way, Microsoft is trying to force its customers to use the Azure cloud service and limit competition in the field.”
She added that the lawsuit “it aims to challenge Microsoft’s wrongdoing, to pressure it to reveal exactly how much UK businesses have been illegally penalized and to refund money to organizations that have been unfairly overcharged.”
Thousands of UK businesses and organizations are represented in the action, which is an “opt-out” class action. This means that any potentially affected company is automatically counted and can receive compensation if Microsoft loses the legal battle. The Stasi represents customers of Amazon, Google and Alibaba, but does not represent any other company, a spokesperson told CNBC.
Source: Skai
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