Microsoft outage ends; Codacons demands compensation for Italian businesses

Microsoft services are operational again after a major global outage that affected over 70 countries and an estimated 430 million customers, with more than 130,000 reports filed in the United States alone. The disruption has prompted immediate calls for compensation from Italian consumer group Codacons. Morningstar Dbrs estimates insured global losses between $100 million and $400 million if Microsoft offers credits or compensation, while the Independent reports potential impacts in the billions of pounds due to halted communications, transactions, and productivity. Codacons has demanded automatic indemnities for affected citizens and businesses, citing production slowdowns, delivery delays, and lost sales. Compensation scenarios include contractual service credits from Microsoft, ranging from 25% to 100% of fees depending on outage duration, or pre-existing cyber insurance policies. However, experts note that cyber policies may not cover all losses, and Italian administrative sanctions remain uninsurable, while European service agreements exclude indirect damages like lost profits.