Microsoft Alleges Google Engaged in Clandestine Plot in the EU

Microsoft has accused Google of financing a proxy campaign aimed at undermining its cloud-based services in Europe. Read Full Article at RT.com

Microsoft Alleges Google Engaged in Clandestine Plot in the EU
Microsoft has made allegations against its long-standing competitor Google, accusing the tech company of orchestrating "shadow campaigns" to undermine Microsoft's cloud business in the eyes of regulators and policymakers within the EU.

In a statement released on Monday, Rima Alaily, Microsoft's Corporate Vice President and Deputy General Counsel, claimed that Google engaged a firm to recruit European cloud companies as “astroturf” groups that would covertly advocate for Google's interests.

“It is designed to discredit Microsoft with competition authorities and policymakers, and [to] mislead the public,” Alaily asserted. She further accused Google of concealing its involvement, funding, and influence over this supposed initiative by enlisting local cloud providers to act as the public representatives of the new organization.

Alaily emphasized that this alleged campaign follows Google's recent attempts to disrupt an antitrust settlement between Microsoft and a consortium of EU cloud firms. “In July, when CISPE [Cloud Infrastructure Services Providers in Europe] was on the verge of resolving its complaint against Microsoft, Google offered CISPE’s members a combination of cash and credits amounting to an eye-popping $500 million to reject the settlement and continue pursuing litigation,” she stated.

Earlier reports indicated that Google had proposed €14 million in cash and €455 million in software licenses to CISPE to prolong its antitrust investigation against Microsoft within the EU. Ultimately, CISPE and Microsoft reached a settlement of nearly $22 million.

Alaily accused Google of employing tactics that “go beyond creating astroturf lobbying organizations,” lamenting that the tech giant is “turning its vast resources towards tearing down others” instead of addressing genuine concerns regarding its own operations. She highlighted that Google is currently subjected to at least 24 antitrust investigations worldwide, pointing out that the company’s dominance in search, digital advertising, and mobile app stores has not faced such extensive scrutiny in the past twenty years.

In 2016, after a protracted decade of legal disputes regarding patent issues, Google and Microsoft agreed to enter a non-aggression pact aimed at mending their previously fraught relationship. However, they chose not to extend this six-year agreement after it lapsed in 2021, resulting in both companies frequently accusing each other of unfair competitive practices.

Last year, Google leveled accusations against Microsoft for anti-competitive behavior in cloud computing, taking issue with Microsoft's forthcoming deals with various EU vendors. Google Vice President Amit Zavery called on local antitrust regulators to investigate these matters.

The rapid expansion of the cloud computing industry has attracted increased regulatory attention both in the U.S. and abroad, as noted by Reuters, which highlighted the growing concerns over the dominance of a limited number of players and the essential role of cloud services in today's corporate landscape.

Aarav Patel contributed to this report for TROIB News