According to a Bloomberg report, Google attempted to derail an antitrust settlement with Microsoft by offering a group of EU-based cloud companies $512 million (€470 million). This offer aimed to keep a formal complaint against Microsoft alive but ultimately failed, allowing the settlement to proceed.
Here’s the backstory: The Cloud Infrastructure Services Providers in Europe (CISPE), a non-profit trade organization, filed a complaint with the EU’s antitrust authority. They claimed that Microsoft was making it difficult for business customers to switch providers by tying its software to Azure cloud services.
During negotiations between CISPE and Microsoft, aimed at improving CISPE’s access to Microsoft’s technologies and resolving the complaint, Google allegedly stepped in. Confidential documents and sources reviewed by Bloomberg suggest that Google offered the financial package to CISPE, contingent on them continuing the complaint against Microsoft.
The proposed package primarily consisted of software licenses for Google’s cloud technology, valued at $495 million (€455 million) over five years. The remaining amount was offered in cash and a long-term partnership proposal. Interestingly, Amazon Web Services (AWS), a member of CISPE, also contributed to Google’s offer.
However, the conditional offer from Google did not sway CISPE. Instead, CISPE reached an agreement with Microsoft. This agreement granted CISPE members enhanced access to Azure features and allowed them to offer Microsoft products and services on their local cloud infrastructures. The deal also included a cash payout of approximately $11 million from Microsoft to CISPE, as per sources familiar with the arrangement.
Amit Zavery, head of platform at Google Cloud, told CRN, “Microsoft’s playbook of paying off complainants rather than addressing the substance of their complaint hurts businesses and shouldn’t fool anyone. We are exploring our options to continue to fight against Microsoft’s anti-competitive licensing in order to promote choice, innovation, and the growth of the digital economy in Europe.”
However, Zavery did not address the allegations that Google attempted a similar tactic. An individual familiar with the matter described Google’s response as “a bit rich,” according to The Register.
