Microsofts cloud ambitions just hit a major snag in the UK. The tech giant is facing a 1bn ($1.27 billion) lawsuit over how it licenses software to customers using rival cloud platforms.Filed in the UKs Competition Appeal Tribunal by Scott+Scott, the lawsuit accuses Microsoft of punishing businesses for choosing competitors like Google Cloud, Amazon Web Services (AWS), and Alibaba over its Azure platform.Heres the gist: if youre using Microsofts Windows Server but prefer another cloud provider, youre allegedly stuck with higher costs. Maria Luisa Stasi, the lead claimant, argues this forces UK businesses into Azures arms and stifles competition. Backed by litigation funder LCM Funding, the case claims Microsofts pricing practices exploit its dominance in operating systems.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, who is head of law and policy for digital rights advocacy group Article19, told CNBC.I WANT THE BEST DEALBy doing so, Microsoft is trying to force customers into using its cloud computing service Azure and restricting competition in the sector.AWS and Google have already flagged Microsofts licensing policies to UK regulators, spurring an ongoing investigation by the Competition and Markets Authority (CMA) into the public cloud sector.Microsoft, for its part, insists the industry is fiercely competitive and points to Googles growing cloud muscle as proof.Microsoft has not yet responded to our request for comment.Big tech under the microscopeMicrosofts legal headaches arent just about the cloud. In June, the EU accused the tech giant of illegally linking its chat and video app Teams with its Office product, giving it an unfair advantage over rivals such as Slack. Microsoft could face a fine equal to 10% of its annual revenue for the alleged breach of the blocs Digital Markets Act (DMA). Regulators in the UK and the EU are tightening the noose on other big tech companies too.For instance, in September the EUs Court of Justice, in two separate cases, ruled in favour of back taxes and fines against Apple and Google totalling a whopping 15.4bn.The court found that Apple had benefitted from substantially and artificially lowered tax in Ireland since 1991. Google, on the other hand, was found guilty of favouring its shopping service in internet searches and thereby abusing its market dominance in Europe.With this latest lawsuit, Microsofts cloud dominance may face a reckoning. Whether the case delivers real change or just more legal bills remains to be seen. Story by Sin Geschwindt Sin is a climate and energy reporter at TNW. From nuclear fusion to escooters, he covers the length and breadth of Europe's clean tech ecos (show all) Sin is a climate and energy reporter at TNW. From nuclear fusion to escooters, he covers the length and breadth of Europe's clean tech ecosystem. He's happiest sourcing a scoop, investigating the impact of emerging technologies, and even putting them to the test. Sin has five years journalism experience and holds a dual degree in media and environmental science from the University of Cape Town, South Africa. Get the TNW newsletterGet the most important tech news in your inbox each week.Also tagged with