Microsoft accuses Google of confidential plotting in EU
Date
10/30/2024 8:37:44 AM
(MENAFN) In a bold move, Microsoft has publicly accused its longstanding rival, Google, of orchestrating clandestine efforts to undermine the tech giant’s cloud business within the European Union. The accusations were made by Microsoft Corporate Vice President and Deputy General Counsel Rima Alaily in a statement released on Monday.
According to Alaily, google allegedly employed a firm to create “shadow campaigns” that would discredit Microsoft among regulatory authorities and policymakers. She claimed that Google sought to recruit European cloud companies to act as “astroturf” groups—organizations that appear to be grassroots but are actually funded and controlled by a larger entity. This strategy, she argued, was aimed at misleading the public and tarnishing Microsoft’s reputation in the eyes of competition authorities.
Alaily further alleged that Google’s efforts were part of a broader strategy to obscure its involvement in the purported scheme, masking its funding and control while presenting local cloud providers as the legitimate face of this new organization. She indicated that these activities followed Google’s recent attempts to derail an antitrust settlement involving Microsoft and a group of cloud firms in Europe.
In a notable incident cited by Alaily, she revealed that in July, when the Cloud Infrastructure Services Providers in Europe (CISPE) was nearing a resolution of its complaint against Microsoft, Google allegedly offered CISPE members a substantial package of cash and credits amounting toUSD500 million. This offer was purportedly intended to persuade them to reject the settlement and continue litigation against Microsoft.
Earlier this year, reports indicated that Google had also proposed EUR14 million (approximatelyUSD15.3 million) in cash and EUR455 million (aroundUSD497.5 million) in software licenses to CISPE to prolong its antitrust investigation into Microsoft. Ultimately, CISPE and Microsoft reached a settlement valued at nearlyUSD22 million.
As these allegations unfold, the tension between the tech giants raises questions about competitive practices in the cloud computing sector and the regulatory landscape in the EU. Microsoft’s claims not only highlight its ongoing battle with Google but also underscore the complexities of antitrust issues in the rapidly evolving tech industry.
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