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A Competition Appeal Tribunal (CAT) has certified a UK collective action alleging that Microsoft’s Windows Server licensing made workloads more expensive on Amazon Web Services (AWS), Google Cloud Platform and Alibaba Cloud than on Microsoft Azure. The case began as a “more than £1bn” claim reported in December 2024; claimant court materials now estimate aggregate damages at approximately £1.7bn to £2.1bn. Certification allows the case to proceed, but the CAT has not found Microsoft liable or ordered compensation.
What the claim alleges
Windows Server can be licensed for use on cloud infrastructure. The proposed case argues that Microsoft’s licensing arrangements imposed additional costs when customers ran Windows Server on rival clouds, while making equivalent Azure deployments financially more attractive. The alleged effect, according to the claim materials, was to encourage customers to choose Azure over AWS, Google Cloud or Alibaba Cloud.
This is a licensing-economics dispute, not a claim about cloud uptime, cybersecurity or the relative performance of the providers. The allegations concern both direct Windows Server licensing and the way those licences interact with third-party cloud infrastructure.
The claim alleges abuse of a dominant position under section 18 of the UK Competition Act 1998 and, for the relevant pre-Brexit period, Article 102 of the Treaty on the Functioning of the European Union. To succeed, the claimant would still need to prove the relevant market power, abusive conduct, a causal link and loss.
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For an illustration only, if two otherwise comparable virtual machines required different Windows licensing payments depending on the host cloud, the claimant would argue that the differential increased the cost of using a rival platform. That example is not a finding about any particular customer’s bill.
Who brought it and who may be covered
Dr Maria Luisa Stasi is the certified class representative. Scott+Scott UK LLP supports the litigation, and the claim website identifies LCM Funding UK Limited as the third-party litigation funder. The defendants are Microsoft Corporation, Microsoft Limited and Microsoft Ireland Operations Limited.
The stated class is narrower than “all UK businesses using Windows Server.” It centres on UK-domiciled businesses and organisations that obtained Windows Server licences for use on:
- Amazon Web Services;
- Google Cloud Platform; or
- Alibaba Cloud.
The claim website identifies the relevant period as beginning in November 2018. Eligibility can depend on the organisation’s domicile, the dates and type of licence, the cloud provider and any applicable exclusion. The precise scope is controlled by the Tribunal-approved order and notice, not by a headline or a general statement that an organisation used Windows Server in the cloud.
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The FAQ lists exclusions including organisations providing legal, expert or professional assistance to either side and the Tribunal itself or entities connected with its panel.
What “opt-out” means
The CAT authorised the proceedings on an opt-out basis. Eligible organisations are generally included automatically and do not have to submit an individual claim to remain in the collective action. If the case produces a judgment or approved settlement, distribution would be handled under the Tribunal’s process.
Opting out generally removes participation in this collective case and may leave an organisation to consider any separate action on its own. The claim FAQ gave 6 August 2026 as the ordinary opt-out date. That date has passed. Any late request must be addressed to the Tribunal under the current notice and administrator instructions; organisations should obtain independent legal advice before seeking to opt out.
How much money is involved?
| Figure | What it represents |
|---|---|
| More than £1bn | The approximate size used when the proposed claim was first reported on 3 December 2024. |
| Approximately £1.7bn–£2.1bn | The claimant’s estimated aggregate damages in the summary claim materials, depending on the alleged licensing practices and sub-class. |
| Eventual compensation | Not known. It would depend on proving liability, identifying eligible losses, expert evidence and a Tribunal-approved distribution method. |
These figures are estimates advanced by the claimant, not money that Microsoft has been ordered to pay. The estimate may change as evidence, disclosure and loss calculations develop.
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What the Tribunal has decided
On 21 April 2026, the CAT granted a collective proceedings order. It decided that the claim could proceed collectively, that the proposed class could use the opt-out procedure and that the funding arrangements did not prevent certification. Microsoft opposed certification.
Certification is a procedural gateway, not a trial judgment. The CAT has not finally decided that Microsoft infringed competition law, that customers were overcharged or that any particular sum is due.
Microsoft’s application for permission to appeal the certification decision was refused at a 20 May 2026 hearing, and the Tribunal’s case page records that the application was renewed before the Court of Appeal. The next listed CAT case-management conference is 4 December 2026. The matter could settle or continue toward a merits hearing.
Microsoft’s position
Microsoft declined to comment when the original December 2024 report was published. The procedural record shows that Microsoft opposed the certification application and argued against the claim proceeding in the form sought. That opposition is not a final determination of the underlying allegations, and no newer company statement is established here.
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How the CMA investigation fits in
The private damages action and the Competition and Markets Authority’s investigation are separate. The collective action seeks compensation for alleged licensing overcharges. The CMA opened an initial investigation on 14 May 2026 into whether Microsoft should be designated as having strategic market status in relation to its business-software ecosystem.
The CMA is examining issues including customer purchasing decisions, alternatives and the ability to switch. Its indicative statutory deadline for a final SMS decision notice is February 2027, with the published timetable specifying 13 February 2027. An investigation or future designation would not itself prove liability in the private damages case, and the CMA has not announced a finding that this licensing conduct breached competition law.
What affected organisations should do now
- Preserve licensing evidence. Keep Windows Server agreements, invoices, renewals, purchase orders, licence quantities and editions.
- Map cloud use. Record which provider hosted each relevant workload, the dates of use and whether licences were obtained for AWS, Google Cloud or Alibaba Cloud.
- Confirm corporate details. Retain documents showing UK domicile during the relevant period and the contracting entity that bought the licences.
- Check the live notice. Review the current CAT order, approved notice and instructions from the claim administrators at ukcloudclaim.com/faq/.
- Take advice before changing position. Opt-out consequences and any late request should be assessed with independent legal advisers.
Registering for updates is not the same as submitting evidence or making a damages application. The claim website says organisations that remain in the class do not need to take further action immediately, but historical records may be needed later to establish membership and loss.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Do not confuse the case with a cloud migration decision
A lawsuit does not establish that Azure, AWS, Google Cloud or Alibaba Cloud will be cheaper for a particular workload. A proper comparison should include Windows licensing, compute, storage, support, data transfer, backup, monitoring, commitments and operational labour. Moving platforms can also involve application compatibility, retraining, identity changes and migration costs.
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For a workload comparison, use the providers’ official tools rather than isolated instance prices: Azure Windows Virtual Machines pricing, AWS Windows pricing and the AWS Pricing Calculator, Google Cloud Compute pricing and Google Cloud Pricing Calculator. Alibaba Cloud publishes Elastic Compute Service pricing. None of these calculators determines legal eligibility or damages.
Separate Microsoft cases
The CAT and UK courts list other Microsoft litigation, including disputes involving pre-owned perpetual licences and Microsoft 365. Those matters concern different products and legal theories and should not be treated as part of this Windows Server cloud-licensing action. See the judiciary hearing listing at judiciary.uk.
Frequently Asked Questions
Does using Windows Server on AWS automatically qualify an organisation?
No. The stated class also requires checking UK domicile, the relevant period, the licence and the Tribunal-approved class definition, as well as exclusions.
Has Microsoft been found to have broken competition law?
No. The CAT certified the collective action but has not made a final liability finding or awarded damages.
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Can an organisation still opt out after 6 August 2026?
The ordinary date shown by the claim FAQ has passed. Any late request must be directed to the Tribunal under the current notice, with independent legal advice.
Is the £2.1bn figure guaranteed compensation?
No. It is the upper end of the claimant’s estimated aggregate damages in court materials. Any award depends on proving liability and loss.
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