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Microsoft accuses Google of running “shadow campaigns” to harm its cloud business. It alleges Google is funding lobby groups and offering millions to European cloud providers to pressure Microsoft. According to Microsoft’s Deputy General Counsel, Rima Alaily, these actions are “designed to discredit Microsoft with competition authorities and mislead the public.”
Allegations of Secret Deals and Tactics
In a recent blog post, Microsoft alleges that Google attempted to bribe European cloud providers. Alaily says Google offered the Cloud Infrastructure Services Providers in Europe (CISPE) $500 million to reject Microsoft’s settlement and continue the legal fight against the company. However, CISPE declined Google’s offer and settled with Microsoft instead.
Additionally, Microsoft claims that Google backed the Coalition for Fair Software Licensing (CFSL). This group reportedly lobbies against Microsoft’s cloud practices and seeks to harm its competitors. It is supposedly led by lobbyist Ryan Triplette, who has past ties to Google.
A Google spokesperson downplayed the link, saying, “If Triplette was a lobbyist for Google, that’s a weird criticism. Everybody in law and policy has worked for Google, Microsoft, or Amazon at some point.”
Alaily also mentioned a new group, the Open Cloud Coalition, that is expected to launch soon. Microsoft claims this group is secretly funded and led by Google, even though it appears to be made up of independent European cloud providers.
This tactic, known as “astroturfing,” creates the illusion of grassroots support while hiding the real backer. Microsoft thinks this is part of a larger Google strategy. It aims to challenge rivals and avoid antitrust issues that it has been facing worldwide.
Google’s Public Complaints
Google has been open with its criticisms of Microsoft’s cloud licensing policies. In September 2024, Google took the unusual step of filing a public antitrust complaint with the EU, claiming Microsoft’s cloud licensing terms unfairly lock in customers.
A Google spokesperson, responding to ArsTechnica, defended the company’s actions. They said, “We’ve been very public about our concerns with Microsoft’s cloud licensing. We and many others believe that Microsoft’s anticompetitive practices lock in customers and create negative downstream effects that impact cybersecurity, innovation, and choice. You can read more in our many blog posts on these issues.”
Nevertheless, critics, including Microsoft, view Google’s approach as opportunistic and misleading.
Implications for the Cloud Industry
Europe has been tough on Big Tech with the Digital Markets Act and Digital Services Act. Now, the dispute signals a shift towards the cloud, a rapidly evolving tech sector, and its nuances. It also raises questions about how regulators can spot and tackle “astroturfing.” Meanwhile, policymakers may see this case as a test to determine the need for new rules in cloud-specific issues.
As Microsoft and Google clash over cloud dominance, new allegations reveal the lengths each may go to to secure its market foothold. However, their conflict may shape the future of cloud services in Europe and the U.S.
