Microsoft facing multibillion-pound legal claim over software licence pricing

Microsoft is facing a potentially multibillion-pound legal claim over allegations it has overcharged for licences to use its software since 2015.

The opt-out claim has been brought by barrister Alexander Wolfson, and says it could apply to millions of UK consumers, businesses and public bodies who have purchased licences for products such as Microsoft Office and Windows.

The claim alleges that the US tech giant has abused its market dominance and imposed restrictive licensing practices which hampered competition and inflated prices.

As a result, it claims, consumers and businesses who purchased licences for some Microsoft software products between October 1 2015 and the present day were overcharged.

“Microsoft’s actions have had a significant and far-reaching impact on UK consumers, businesses and public bodies,” Mr Wolfson said.

“This claim seeks to hold Microsoft to account and to secure compensation for the many affected members of the class.

“With billions of pounds potentially at stake, this case is about ensuring fairness in the digital marketplace and ensuring even the largest tech companies play by the rules.”

Kate Pollock, head of competition ligation at law firm Stewarts, which is working with Mr Wolfson, said: “Microsoft’s conduct has had a profound and costly impact on millions of individuals and private and public sector organisations that rely on its software for daily business operations.

“We believe that Microsoft abused its market dominance by imposing restrictive licensing practices that effectively shut down competition and inflated prices.

“We’re proud to be supporting Alexander Wolfson in bringing this claim.

“With our specialist experience in complex competition litigation, we are well placed to help secure justice for the millions affected. This case has the potential to restore greater fairness and accountability to the UK’s increasingly digital economy.”

Microsoft has been contacted for comment.

In December, a separate £1 billion claim was filed with the UK’s Competition Appeal Tribunal, alleging Microsoft customers using rival cloud computing platforms to Microsoft’s own Azure were charged higher licensing fees to access its Windows server.