Arab Press

بالشعب و للشعب
Wednesday, Dec 17, 2025

Microsoft's ‘anti-competitive’ software resale practices lead to £270 million lawsuit, UK vendor claims

Microsoft's ‘anti-competitive’ software resale practices lead to £270 million lawsuit, UK vendor claims

Microsoft has been accused of violating EU and UK competition law by attempting to kill the market for the resale of perpetual licence products like its Office suite in a lawsuit filed by a vendor claiming £270 million in damages.

In its case in the High Court of Justice in London, British reseller ValueLicensing (VL) has said that the tech giant’s general licensing terms and conditions for its business-to-business software products infringe on the UK’s Competition Act (1998), the Treaty on the Functioning of the European Union (TFEU) and the European Economic Area agreement.

According to the particulars of VL’s claim, the company alleges that Microsoft is abusing its dominant position in the “desktop operating system” and “office productivity suite” markets to persuade customers to exchange licences in return for heavily discounted subscription-based models.

"Microsoft has effectively been paying those customers (via those discounts) to protect Microsoft from competition, by restricting the supply of pre-owned licences to Microsoft’s competitors like VL."


This conversion from licensee to subscriber has cut out intermediaries like VL, whose business model involves purchasing and reselling such secondhand licences from companies that have “either migrated to cloud services”, downsized or gone out of business.

Additionally, VL alleges that Microsoft “recently shortened the support period for its perpetually licensed products” as part of a “sustained – and ongoing – campaign to stifle the sale of pre-owned licences for Microsoft software in the UK and EEA.”

It cited as an example of such restrictive practices the recently announced five-year support period for Office 2021 as opposed to the seven-year period of total support offered to Office 2019 consumers. Historically, the company’s policy was to offer 10 years of support, with bug fixes, security updates and tech support.

It also noted the increasing complexity of Microsoft’s licensing terms and conditions, which “until February 2021 were regularly published as a single document; the last English version ran toover 75,000 words.” These conditions are now spread over a number of webpages on its site.

Although filed in April, details of VL’s lawsuit only came into the public domain after Microsoft Corporation in the US and its two co-defendant subsidiaries UK-based Microsoft Ltd. and Microsoft Ireland Operations Ltd. acknowledged receiving legal notice earlier this month.

“Once a licence is placed onto the market in Europe, it is protected from the vendor effectively, they have exhausted their rights once it is placed onto the market,” VL managing director Jon Horley told news portal The Register.

While Microsoft has not commented on the case, it has reportedly signalled its intent to contest the lawsuit. The software giant is preparing a jurisdictional challenge to contest the London High Court’s standing to hear the case. This is likely to be heard only early next year, according to the outlet.

Although VL estimates it is suffering damages to the tune of £87,000 daily (roughly $121,000) in addition to the overall loss of some £270 million (about $375 million) in revenue, Horley said there were “many different ways” for his company to “stay in the game.”

“I’ve stayed in the game for 17 to 18 years. However long this takes, I’ll stay in the game as far as this part is concerned,” he told the site.

If the contracts are struck down and voided, it would have far-reaching repercussions across Europe and the UK for Microsoft’s licensing and sales divisions.

A victory for VL, Horley stated, would effectively mean that “almost every single organisation, and then any organisation that has signed up to [Microsoft’s alleged anti-competitive] terms, is effectively party to an [allegedly] anti-competitive agreement. And that includes governments, for example, in the UK with a digital transformation arrangement,” as cited by The Register.

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Saudi Arabia Condemns Sydney Bondi Beach Shooting and Expresses Solidarity with Australia
Washington Watches Beijing–Riyadh Rapprochement as Strategic Balance Shifts
Saudi Arabia’s Vision 2030 Drives Measurable Lift in Global Reputation and Influence
Alcohol Policies Vary Widely Across Muslim-Majority Countries, With Many Permitting Consumption Under Specific Rules
Saudi Arabia Clarifies No Formal Ban on Photography at Holy Mosques for Hajj 2026
Libya and Saudi Arabia Sign Strategic MoU to Boost Telecommunications Cooperation
Elon Musk’s xAI Announces Landmark 500-Megawatt AI Data Center in Saudi Arabia
Israel Moves to Safeguard Regional Stability as F-35 Sales Debate Intensifies
Cardi B to Make Historic Saudi Arabia Debut at Soundstorm 2025 Festival
U.S. Democratic Lawmakers Raise National Security and Influence Concerns Over Paramount’s Hostile Bid for Warner Bros. Discovery
Hackers Are Hiding Malware in Open-Source Tools and IDE Extensions
Traveling to USA? Homeland Security moving toward requiring foreign travelers to share social media history
Wall Street Analysts Clash With Riyadh Over Saudi Arabia’s Deficit Outlook
Trump and Saudi Crown Prince Cement $1 Trillion-Plus Deals in High-Profile White House Summit
Saudi Arabia Opens Alcohol Sales to Wealthy Non-Muslim Residents Under New Access Rules
U.S.–Saudi Rethink Deepens — Washington Moves Ahead Without Linking Riyadh to Israel Normalisation
Saudi Arabia and Israel Deprioritise Diplomacy: Normalisation No Longer a Middle-East Priority
As Trump Deepens Ties with Saudi Arabia, Push for Israel Normalization Takes a Back Seat
Thai Food Village Debuts at Saudi Feast Food Festival 2025 Under Thai Commerce Minister Suphajee’s Lead
Saudi Arabia Sharpens Its Strategic Vision as Economic Transformation Enters New Phase
Saudi Arabia Projects $44 Billion Budget Shortfall in 2026 as Economy Rebalances
OPEC+ Unveils New Capacity-Based System to Anchor Future Oil Output Levels
Hong Kong Residents Mourn Victims as 1,500 People Relocated After Devastating Tower Fire
Saudi Arabia’s SAMAI Initiative Surpasses One-Million-Citizen Milestone in National AI Upskilling Drive
Saudi Arabia’s Specialty Coffee Market Set to Surge as Demand Soars and New Exhibition Drops in December
Saudi Arabia Moves to Open Two New Alcohol Stores for Foreigners Under Vision 2030 Reform
Saudi Arabia’s AI Ambitions Gain Momentum — but Water, Talent and Infrastructure Pose Major Hurdles
Tensions Surface in Trump-MBS Talks as Saudi Pushes Back on Israel Normalisation
Saudi Arabia Signals Major Maritime Crack-Down on Houthi Routes in Red Sea
Italy and Saudi Arabia Seal Over 20 Strategic Deals at Business Forum in Riyadh
COP30 Ends Without Fossil Fuel Phase-Out as US, Saudi Arabia and Russia Align in Obstruction Role
Saudi-Portuguese Economic Horizons Expand Through Strategic Business Council
DHL Commits $150 Million for Landmark Logistics Hub in Saudi Arabia
Saudi Aramco Weighs Disposals Amid $10 Billion-Plus Asset Sales Discussion
Trump Hosts Saudi Crown Prince for Major Defence and Investment Agreements
Families Accuse OpenAI of Enabling ‘AI-Driven Delusions’ After Multiple Suicides
Riyadh Metro Records Over One Hundred Million Journeys as Saudi Capital Accelerates Transit Era
Trump’s Grand Saudi Welcome Highlights U.S.–Riyadh Pivot as Israel Watches Warily
U.S. Set to Sell F-35 Jets to Saudi Arabia in Major Strategic Shift
Saudi Arabia Doubles Down on U.S. Partnership in Strategic Move
Saudi Arabia Charts Tech and Nuclear Leap Under Crown Prince’s U.S. Visit
Trump Elevates Saudi Arabia to Major Non-NATO Ally Amid Defense Deal
Trump Elevates Saudi Arabia to Major Non-NATO Ally as MBS Visit Yields Deepened Ties
Iran Appeals to Saudi Arabia to Mediate Restart of U.S. Nuclear Talks
Musk, Barra and Ford Join Trump in Lavish White House Dinner for Saudi Crown Prince
Lawmaker Seeks Declassification of ‘Shocking’ 2019 Call Between Trump and Saudi Crown Prince
US and Saudi Arabia Forge Strategic Defence Pact Featuring F-35 Sale and $1 Trillion Investment Pledge
Saudi Sovereign Wealth Fund Emerges as Key Contender in Warner Bros. Discovery Sale
Trump Secures Sweeping U.S.–Saudi Agreements on Jets, Technology and Massive Investment
Detroit CEOs Join White House Dinner as U.S.–Saudi Auto Deal Accelerates
×