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Microsoft faces UK class action over software license restrictions, market dominance

Microsoft is back in the sights of the law in the UK. This time, it’s being sued for a multibillion-pound class action, one that will potentially impact millions of consumers and businesses who’ve made use of its software since 2015. At the center of the lawsuit are claims that the technology giant exploited its position of dominance by limiting the resale of second-hand licenses—thereby reducing competition and driving up prices for both new and established users.

These aren’t obscure enterprise tools under discussion—it’s everyday software like Microsoft Office and Windows. As a result, schools, small businesses, and individuals alike may have unknowingly faced higher costs with fewer choices. According to the legal team, Microsoft’s licensing strategy disrupted the market to the point of consumer harm. In plain terms: they’re calling it rigged.

Kate Pollock, competition litigation lead at Stewarts law firm, described the alleged behavior as more than aggressive business tactics. “This appears to be systematic,” she explained. “If proven, it shows a pattern that has unfairly pushed millions into paying more than necessary.”

Meanwhile, Alex Wolfson, serving as the proposed class representative, framed the issue as one of broader economic fairness. “This isn’t just about overcharging,” he said. “It’s about whether a tech powerhouse can limit choices and sidestep accountability.”

To be clear, this isn’t Microsoft’s first rodeo with license-related litigation in the UK. Back in 2021, ValueLicensing sued the company over similar issues. Furthermore, a more recent £1 billion claim accused Microsoft of penalizing customers who ran Windows Server outside of Azure.

Although Microsoft has previously settled with EU groups like CISPE over cloud-related competition matters, this fresh legal challenge underscores growing unease around how dominant tech firms wield control over their ecosystems.

As these courtroom struggles play out, the message from plaintiffs is clear: market dominance cannot justify anti-competitive practices. With billions at stake in potential damages and a focus on digital marketplace fairness, the stakes for Microsoft—and the software industry as a whole—are anything but modest.

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