Microsoft is being sued for $1.27 billion in the UK. The lawsuit claims that Microsoft is charging unfair prices that hurt businesses using other cloud platforms like Amazon Web Services (AWS), Google Cloud, and Alibaba Cloud.

The complaint says Microsoft uses its powerful position in the market to make its services cheaper for those who use its cloud platform, Azure, while making it more expensive for those who choose competitors. This, the lawsuit argues, forces businesses to switch to Microsoft’s services and harms fair competition.

The lawsuit was filed on December 3 at the Competition Appeal Tribunal. It represents thousands of UK businesses and organizations. This is an "opt-out," meaning all businesses affected by Microsoft's actions are automatically included in the lawsuit. If the case is successful, these companies could receive compensation without needing to join the lawsuit individually.

The lawsuit claims that it gives lower prices to companies that use its Windows Server on its own cloud platform, Azure. This pricing makes it more expensive for businesses to use other cloud services like Amazon Web Services (AWS), Google Cloud, or Alibaba Cloud. As a result, it pressures customers to choose Azure over its competitors.

“Put simply, Microsoft is punishing UK businesses and organisations for using Google, Amazon, and Alibaba for cloud computing by forcing them to pay more money for Windows Server,” Stasi said in a statement to CNBC.

Legal action against anti-competitive practices

Stasi argues that Microsoft's pricing strategy restricts competition in the cloud sector. "By doing so, Microsoft is trying to force customers into using its cloud computing service Azure and restricting competition in the sector," she said.

The lawsuit wants to stop Microsoft’s unfair practices, find out how much UK businesses have been affected, and get money back for those who paid too much. If the case is successful, Microsoft could face large fines.