The conflict between Microsoft and Google in the cloud services market is intensifying. Microsoft alleges that Google is behind a shadowy lobbying organization in Europe, according to TechCrunch. Microsoft’s Deputy General Counsel Rima Alaily claims that Google established the Open Cloud Coalition to push its interests in cloud solutions, securing support from politicians and antitrust bodies.
Alaily argues that Google is disguising its leadership role by placing smaller European companies at the forefront. “When the group launches [on October 29], Google, according to our information, will try to present itself as a secondary participant rather than a leader,” a Microsoft spokesperson said. She further stated that it is unclear whether Google provided cash incentives or service discounts to other companies for their involvement.
Open Cloud Coalition’s Formation
The coalition is led by Nicky Stewart, director of public sector relations at British hosting firm Civo. Microsoft claims that the consulting firm DGA Group recruited members for the coalition, although DGA has not disclosed the organization’s funding sources.
The coalition consists of 10 companies, including Google, Civo, and other cloud providers such as Gigas, ControlPlane, and Pulsant. In response to Microsoft’s allegations, Stewart told TechCrunch that the coalition operates transparently and promotes an open market and better interoperability between European cloud services. She denied that the group was formed to oppose any specific company.
Ongoing Tensions and Antitrust Complaints
The dispute between Microsoft and Google traces back to licensing changes that Microsoft introduced in 2019, reminds NIX Solutions. These changes increased the cost of using Microsoft’s software on competing cloud platforms, triggering an antitrust complaint by the non-profit CISPE. Microsoft eventually agreed to a $22 million settlement and offered improved terms to some cloud providers, enabling them to run Microsoft software on their own infrastructure.
However, the settlement excluded major competitors like Google, AWS, and Alibaba. In September, Google filed a fresh antitrust complaint, accusing Microsoft of using unfair licensing practices to keep customers locked into its Azure platform. Notably, Google had previously offered CISPE members €470 million to continue their case against Microsoft, but the offer was declined.
The competition between the two tech giants shows no signs of slowing down. We’ll keep you updated on further developments.