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Microsoft accused of infringing on the secondary software market
08.04.2021 [23:11],
Maxim Shevchenko

Software reseller ValueLicensing sues Microsoft in the High Court of London. The Redmond tech giant is abusing its dominant market position, he says. The complaint alleges that Microsoft is restricting the sale of used licenses for its software in the UK and the EU.

According to ValueLicensing, Microsoft is abusing its dominant position by imposing anticompetitive contractual clauses on both public and private entities, restricting the resale of perpetual licenses as a condition of discounts. VallueLicensing says this has resulted in higher prices and less choice for customers who have migrated to Office365 and Azure cloud subscriptions.

Companies like ValueLicensing rely on buying perpetual licenses from organizations looking to reduce the amount of software they purchase. These licenses are then resold to other organizations at very attractive prices. Jonathan Horley, founder and managing director of Value Licensing, says Microsoft has always opposed the secondary software market. Any used license Microsoft considers as a direct competitor to the software it distributes. Horley claims Microsoft forced many organizations to enter into anticompetitive agreements with her. He states that Microsoft has simply revoked millions of pre-owned licenses that should have entered the market after organizations transitioned from perpetual programs to a subscription-based model due to Microsoft’s actions.

ValueLicensing says many government departments, including the police and the central government, have waived their perpetual licenses due to pressure from Microsoft. The company asks the High Court of London to order the Redmond tech giant to recover damages it inflicted on the used software market in the UK and the European Union from 2021 to the present day. ValueLicensing estimates this amount at € 313 million.

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