Microsoft Blames Google for Sabotaging Its Business in the EU
Microsoft has accused Google of financing a proxy campaign aimed at undermining its cloud services in Europe. Read Full Article at RT.com.
TroibNews 
Microsoft has accused its competitor Google of conducting "shadow campaigns" aimed at undermining its cloud business with regulators and policymakers in the EU.
In a statement issued on Monday, Rima Alaily, Microsoft’s Corporate Vice President and Deputy General Counsel, claimed that Google had engaged a firm to recruit European cloud companies as “astroturf” groups to 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 alleged that Google is attempting to obscure its involvement, funding, and oversight of the purported scheme by enticing local cloud providers to act as the face of the new organization.
Alaily further noted that this alleged campaign follows accusations that Google tried to obstruct an antitrust settlement between Microsoft and a coalition of EU-based cloud companies.
“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,” Alaily stated.
Earlier this year, reports suggested that Google had proposed €14 million in cash and €455 million in software licenses to CISPE to pursue its antitrust investigation against Microsoft. In the end, CISPE and Microsoft settled for around $22 million.
Alaily claimed that Google’s approach “goes beyond creating astroturf lobbying organizations,” arguing that the company is “turning its vast resources towards tearing down others” instead of confronting "legitimate questions" regarding its own practices. She highlighted that Google is currently facing at least 24 antitrust investigations worldwide, indicating that its search, digital advertising, and mobile app store monopolies are under unprecedented scrutiny.
Following a decade of legal disputes over patent issues, Google and Microsoft established a non-aggression pact in 2016 to improve their historically contentious relationship. However, the six-year agreement was not renewed after it lapsed in 2021, leading to ongoing mutual accusations of unfair competition.
Last year, Google Cloud accused Microsoft of engaging in anti-competitive practices in the cloud computing sector, objecting to several impending agreements with EU cloud vendors. Google Vice President Amit Zavery called on local antitrust regulators to examine the situation.
The rapidly expanding cloud computing market has attracted heightened regulatory attention in the US and globally in recent years. Reuters has reported that this increased scrutiny stems from the dominance of a few key players and the crucial role that cloud services play in the business landscape.
Frederick R Cook contributed to this report for TROIB News
In a statement issued on Monday, Rima Alaily, Microsoft’s Corporate Vice President and Deputy General Counsel, claimed that Google had engaged a firm to recruit European cloud companies as “astroturf” groups to 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 alleged that Google is attempting to obscure its involvement, funding, and oversight of the purported scheme by enticing local cloud providers to act as the face of the new organization.
Alaily further noted that this alleged campaign follows accusations that Google tried to obstruct an antitrust settlement between Microsoft and a coalition of EU-based cloud companies.
“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,” Alaily stated.
Earlier this year, reports suggested that Google had proposed €14 million in cash and €455 million in software licenses to CISPE to pursue its antitrust investigation against Microsoft. In the end, CISPE and Microsoft settled for around $22 million.
Alaily claimed that Google’s approach “goes beyond creating astroturf lobbying organizations,” arguing that the company is “turning its vast resources towards tearing down others” instead of confronting "legitimate questions" regarding its own practices. She highlighted that Google is currently facing at least 24 antitrust investigations worldwide, indicating that its search, digital advertising, and mobile app store monopolies are under unprecedented scrutiny.
Following a decade of legal disputes over patent issues, Google and Microsoft established a non-aggression pact in 2016 to improve their historically contentious relationship. However, the six-year agreement was not renewed after it lapsed in 2021, leading to ongoing mutual accusations of unfair competition.
Last year, Google Cloud accused Microsoft of engaging in anti-competitive practices in the cloud computing sector, objecting to several impending agreements with EU cloud vendors. Google Vice President Amit Zavery called on local antitrust regulators to examine the situation.
The rapidly expanding cloud computing market has attracted heightened regulatory attention in the US and globally in recent years. Reuters has reported that this increased scrutiny stems from the dominance of a few key players and the crucial role that cloud services play in the business landscape.
Frederick R Cook contributed to this report for TROIB News
