Microsoft has accused Google of orchestrating a proxy campaign aimed at undermining Microsoft’s reputation with regulatory bodies and policymakers in the European Union and elsewhere. In a blog post authored by Rima Alaily, Microsoft’s deputy general counsel, the company alleges that Google has taken extensive measures to conceal its role in the funding and control of the Open Cloud Coalition—a group purported to advocate for a fair, competitive, and open cloud services industry across the UK and EU.
Microsoft asserts that Google employed a lobbying firm in Europe to establish and manage the organization, while also enlisting various European cloud providers to serve as the campaign’s public face. Microsoft claims Google intends to depict itself as a minor participant rather than the primary sponsor of the Open Cloud Coalition. Microsoft cites a recruitment document that omits any reference to Google’s involvement and highlights the participation of Nicky Steward, who co-authored a complaint against Microsoft and Amazon Web Services in relation to an ongoing UK antitrust investigation in the cloud services sector.
According to Microsoft, it remains unclear what Google may have promised smaller companies to join the coalition, either financially or through discounts. A cloud provider reportedly approached by Google indicates the coalition’s intended focus on attacking Microsoft’s cloud services in the EU and the UK. Engadget was unable to independently confirm Microsoft’s allegations.
A Google spokesperson responded to Engadget, expressing concern over Microsoft’s cloud licensing practices, which they argue are anticompetitive and negatively impact innovation, cybersecurity, and customer choice. Google referenced several blog posts that discuss these issues further.
Microsoft suggests Google’s efforts are a response to increased regulatory scrutiny on its search, advertising, and mobile app store operations, noting that Google is currently facing 24 antitrust investigations worldwide. This includes a U.S. Department of Justice case that could potentially lead to the breakup of the company.
Alaily, from Microsoft, remarked on the unprecedented challenges Google currently confronts concerning its monopolies in search, digital advertising, and mobile app stores, at a time when Google is being advised to address serious questions about its business practices. Instead, according to Microsoft, Google is using its vast resources to undermine competitors, aiming to strengthen its Google Cloud Platform by attacking Microsoft.
These accusations arise following Google’s purported attempt to obstruct an antitrust settlement between Microsoft and the Cloud Infrastructure Services Providers in Europe (CISPE). In July, Bloomberg reported that Google had offered €470 million to CISPE to pursue litigation against Microsoft, an offer that CISPE declined.
As Google’s digital ad revenue growth has slowed in recent years, the company has increasingly focused on cloud services as an alternative revenue stream. Notably, in 2023, Google’s cloud division reached breakeven point for the first time and reported a $900 million profit in the first quarter of the current year.