4 December 2025 — The UK Competition Appeal Tribunal (“CAT”) has granted Microsoft permission to appeal the Tribunal’s Preliminary Issues Trial Judgment. This judgment was delivered on 12 November 2025, in the long-running competition damages claim brought by JJH Enterprises Limited (trading as ValueLicensing).
The order, issued on 4 December 2025, gives Microsoft the green light to challenge the Tribunal’s important findings. These findings concern novel legal issues arising out of ValueLicensing’s allegations of exclusionary conduct in the software relicensing market.
The permission decision marks the latest development in one of the UK’s most closely watched technology competition cases.
Tribunal Finds Real Prospect of Success on Appeal
According to the Tribunal, the preliminary issues determined at trial raise “points of law on which there is no clear authority”. Furthermore, the Defendants (the three Microsoft entities) have “reasonable prospects of success on appeal.”
The Tribunal emphasised the absence of direct precedent on the core legal questions. These questions centre on the scope of liability, causation, and market definition in relation to Microsoft’s software licensing practices.
Under the CAT Guide to Proceedings, paragraph 8.28, and CPR 52.6, permission should only be granted if an appeal has a real prospect of success. Alternatively, there should be some other compelling reason for it to be heard. Here, the Tribunal unanimously concluded that Microsoft satisfied this standard.
Background: PI Trial Judgment in November 2025
The permission order follows the CAT’s Preliminary Issues Judgment ([2025] CAT 75) issued on 12 November 2025. In it, the Tribunal addressed complex questions of law central to ValueLicensing’s claim.
As covered in Competition.Today’s earlier news digest (see: Weekly Global Antitrust News Digest, 10–15 November), the PI judgment clarified key elements relevant to proving anticompetitive foreclosure. This is in the market for pre-owned Microsoft licences. Foundational questions were included:
- Whether Microsoft owed a duty under competition law in the alleged circumstances
- The proper legal test for establishing loss causation in secondary software licensing markets
- The interpretation of EU and UK jurisprudence concerning the resale of perpetual software licences
The Tribunal’s reasoning signalled potential difficulties for both sides and set the stage for further litigation on the merits.
Next Steps: Appeal to the Court of Appeal
Permission now secured, Microsoft is expected to advance a substantive appeal to the Court of Appeal. This appeal will scrutinise the CAT’s legal analysis on the preliminary issues. It may significantly shape the trajectory of the broader claim, which concerns substantial alleged damages related to Microsoft’s licensing and upgrade strategy.
A Court of Appeal ruling could have cross-market implications for software licensing, resale rights, and the competition law treatment of digital goods. This makes the forthcoming appeal one to watch for the tech and antitrust community alike.
The case is 1570/5/7/22 (T) JJH Enterprises Limited (trading as ValueLicensing) v Microsoft Corporation and Others in the CAT.
